Gold miner Evolution Mining has secured state government approval to start construction of an exploration decline at the Cowal operation in New South Wales.
The regulatory approval was granted by the NSW Department of Planning and Environment.
The Galway-Regal-E46 (GRE46) decline is being developed to expand the company’s existing resource and lead to new discoveries.
Evolution announced GRE46’s maiden resource in April 2018. The resources stands at 5.9Mt of gold at 3.17g/t of gold for 603,000 ounces.
Evolution expects to launch drilling in the March 2019 quarter at an overall capital expenditure of $20–22 million, spread over the next two financial years.
In addition, the approval allows Evolution to perform further drilling at the recently discovered Dalwhinnie lode.
Although Evolution’s production report released last week showed an overall fall in annual production when compared with the record-breaking September 2017 quarter, Cowal was noted by the company for its strong financial performance.
Cowal’s cash flow was up 413 per cent on the previous quarter (June 2018) due to its continued expansion work.
“This is another important step towards achieving our objective of increasing Cowal’s production rate to over 300,000 ounces per annum on a sustainable basis,” said Evolution vice president of discovery and chief geologist, Glen Masterman.
“As indicated by recent drilling results, we are excited about the potential to add significant underground resources of high-grade material over a long strike length.”