Evolution Mining has boosted its ore reserves by nearly 50 per cent year-on-year following expansion of its inventory at the Cowal underground gold mine in New South Wales.
The group reserves now stand at 9.9 million ounces, up from 6.6 million ounces at the end of 2019.
Evolution stated that the Cowal underground reserves had jumped to over a million ounces, with grade improving to 2.59 grams per tonne gold.
The company aims to expand Cowal production to 350,000 ounces a year and is in the progress of completing an underground feasibility study.
The first Red Lake reserves in Ontario, Canada amounts to nearly three million ounces.
Evolution executive chairman Jake Klein said the company’s strategy of building a world class exploration team and acquiring assets in highly endowed gold districts had resulted in today reporting the largest ore reserve in the company’s history.
“The scale of the endowments at Cowal and Red Lake place them in the top five gold deposits in Australia and Canada respectively,” Klein said.
“With around 10 million ounces in ore reserves we have a fantastic platform on which to continue to grow our business for the benefit of all stakeholders.”
Evolution made a move towards expanding the Cowal mine last year when the company board approved the development of the Galway exploration decline.
This will be the second decline at Cowal and allow additional drilling to increase its underground ore reserves and future production.
The board of Evolution has now also approved the $60 to 70 million development of Red Lake surface decline.
This will give access to the HG Young orebody and additional low-cost ounces in the Upper Campbell area of the mine, according to Evolution.
The company expects the additional sources to lift the annual production rates at Red Lake to more than a million tonnes.
Evolution plans to complete the construction in the March quarter, with first ore expected in the June quarter in 2022.
“Red Lake has consistently exceeded our expectations in almost every respect,” Klein said.
“With today’s announcement of the 2.93 million ounce gold JORC code ore reserve and board approval for the decline development we are excited about the continued momentum we are building at this operation.
“This commitment is a significant step towards achieving Evolution’s vision of restoring Red Lake to be one of Canada’s premier gold mines, sustainably producing 300,000-500,000 ounces per annum of low-cost gold.”
Evolution reported a record underlying profit after tax of $234 million for the second half of last year, a 57 per cent increase on the prior corresponding period.