Evolution suffers production blow at Mt Carlton

Image: Evolution Mining

Evolution Mining has cut around 75,000 ounces of gold from its Mt Carlton life of mine plan.

This follows a completed grade control infill program to update the resource block model.

Evolution subsequently reduced its 2020 financial year production guidance at Mt Carlton from 70,000–75,000 ounces to around 60,000 ounces.

The company expects to produce around 50,000 ounces for the 2021 financial year.

“We are disappointed to be recording an impairment at Mt Carlton,” Evolution chairman Jake Klein said.

“We will be working hard over the next six months to optimise the future of the operation and to further understand the size and quality of the Crush Creek project.”

Evolution is considering all options to maximise the future value of Mt Carlton, with drilling at the Crush Creek joint venture project with private company Basin Gold continuing to return exciting results.

The reduction of 75,000 ounces represents around 1 per cent of Evolution’s group ore reserves and amounts to a material change to the value of Mt Carlton.

Evolution will sustain an impairment of around $75 million to $100 million post-tax in its 2020 financial year accounts.

It is now expected to produce around 715,000 ounces in the 2020 financial year. This excludes the recently-acquired Red Lake operation in Canada.

This is a drop of approximately 1.4 per cent from the previous guidance of 725,000 ounces.

All other Evolution operations are performing in line, if not better than planned, for the June quarter.

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