ERO puts Georgetown alluvial gold mine on the market

ERO Mining has decided to sell its Georgetown gold mine in central-northern Queensland after receiving expressions of interest from several parties.

 

ERO Mining has decided to sell its Georgetown gold mine in central-northern Queensland after receiving expressions of interest from several parties.
 
The company flagged the potential sale of the alluvial gold mine in its June Quarterly report last month, when it indicated it was considering several alternative plans for the operation.
 
“Following a review of these options and the receipt of unsolicited expressions of interest in purchasing the operations, ERO believes that the sale of the project is in the best interests of its shareholders,” managing director Kevin Lines said in a letter to shareholders.
 
“Site inspections by interested purchasers are scheduled to commence in mid-September 2010 and shareholders will be updated on the sale process following these visits.”
 
The mine is located 375 km west of Cairns and comprises 13 granted mining leases and two exploration prospects; True Blue and Tunnels.
 
Drilling on the two prospects has been suspended until the outcome of the sale is known.
 
Mining operations begun in April this year, but production was affected by recurrent failures of the main drive assembly in the processing plant, which was eventually replaced.
 
The operation produced 140 ounces of fine gold for the quarter, with sales totalling $192,456.
 
The company also stated in the June report that it was weighing up the choice of either selling or expanding the mine.
 
“A two staged expansion, initially involving the introduction of night shift operations followed in 2011 by the commissioning of a new processing plant is currently under review,” the company said.
 
“The impact of this expansion option is forecast to result in a fourfold increase in gold production with a very substantial reduction in operating costs.”

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