Evolution meets production guidance, misses on costs

Image: Evolution Mining

Gold miner Evolution Mining has beaten the top end of the company’s production guidance at its three highest margin operations – Cowal in New South Wales, and Mt Carlton and Ernest Henry, both in Queensland.

Evolution produced 251,500 ounces at Cowal, 106,646 ounces at Mt Carlton and 98,689 ounces at Ernest Henry in the 2019 financial year, helping it meet the company’s production guidance with 753,001 ounces overall.

In the June quarter, Evolution produced 194,886 ounces at a cost of $915 an ounce, both improvements on the company’s third quarter performance.

Evolution’s all-in sustaining costs for the 2019 financial year, however, finished above its $850–$900 an ounce guidance at $924 an ounce.

The company has forecast gold production to reach between 725,000–775,000 ounces in the 2020 financial year at costs of $890–$940 an ounce.

Meanwhile, Evolution extended its group average reserve life to around 10 years during the 2019 financial year, with significant investment to extend Cowal’s mine life and production to more than 300,000 ounces a year.

Its major project at Cowal continues, including expansion of its processing plant and pre-works construction of the integrated waste landform tailings facility.

Cowal has seen increased throughput rates during the quarter due to an improvement to processing capability.

Evolution is also on track to start underground development at the Mt Carlton site in the September quarter.

Its mining activities at Mt Carlton have focused on an underground access portal, mobilising a mining contractor and establishing services, such as electricity, water and compressed air.

The company reported continued drilling success at Cowal and Dalwhinnie, with significant intersections, including 20 metres grading 8.36 grams of gold per tonne and 22 metres grading 5.49 grams per tonne.

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