Evolution Mining is on track to lift its gold production to more than 900,000 ounces after the company’s board approved development of the Cowal underground mine in New South Wales.
The open pit gold operation, located 350 kilometres west of Sydney, produced 210,847 ounces of gold for financial year 2021, but the approved development should increase that by 60 per cent.
Evolution executive chairman Jake Klein said the mine was easily the company’s most important.
“Cowal is undoubtedly a world-class asset and a key asset in the Evolution portfolio,” Klein said.
“Today, the board has approved the development of an underground mine that contributes to our goal of Cowal producing 350,000 ounces of low-cost gold a year and extend its mine life out beyond 17 years, while at the same time injecting significant economic benefit for all stakeholders.”
The Evolution board also approved restoration of its Red Lake gold mine in Canada, significantly improving overall production.
“Both operations demonstrate outstanding organic growth opportunities within Evolution’s portfolio that will grow production by 35 per cent to over 900,000 ounces of low-cost gold over the next three years,” Klein added.
The board approval came on schedule this quarter, while past plant procurement and ongoing development of the Galway decline will continue to the end of 2021.
First ore is expected from the Cowal’s underground mine by mid-2023, with paste plant commissioning expected to occur at the same time.
The open pit mine achieved its full-year guidance of 205,000-230,000 ounces for financial year 2021, with the mine life now reduced to 11 years.