Gold miner Evolution Mining will advance three projects at the Mt Carlton operation in Queensland after approving a $60 million investment.
The projects include the underground development, stage four pit cut-back and plant modifications.
Evolution will bring forward production from Mt Carlton’s higher-grade Link zone with these projects.
It expects to deliver first ore from the underground operation during the 2021 financial year.
Evolution is also confident the underground reserve at Mt Carlton can be expanded.
The miner plans to undertake additional drilling once the development is in place to follow up on several “promising” drill intersections that are not currently included in the underground reserves or resources.
Chairman Jake Klein described Mt Carlton as a high-margin asset which had been a standout in the company’s portfolio.
“The mine has generated over $100 million in net mine cash flow in each of the last three years,” Klein said.
“The underground development of the Link zones ensures the continued production of high-margin ounces.”
Evolution requires regulatory approval before it can launch the underground project and will lodge submissions to the Department of Environment and Science in the coming month.
It estimates that $10 million will be spent on the development and plant modifications during the current financial year and the remaining $50 million in the three subsequent fiscal periods.
Evolution produced 112,479oz from Mt Carlton’s open pit operations in the 2018 financial year.
It flagged that funds would be allocated to the development of Mt Carlton, along with the Mt Rawdon and Cracow operations, during a 2018 review.
Last week Evolution received approval from the New South Wales Government to increase annual output at the Cowal mine to more than 300,000oz.