KalNorth Gold Mines has started assessment work on the potential for developing an underground mining operation at its Lindsay's field near Kalgoorlie.
KalNorth CEO John McKinstry said a move underground would help extend the life of Lindsay's after the current open pit was completed.
“Underground operations, delivering substantially higher grade ore, will significantly extend mine life at Lindsay's,” he said.
“While open pits provide a rapid path to cash flow, there is a strong future for sustained underground operations, not only at Lindsay's but also at the other KalNorth deposits.”
The company said early works were based on a limited amount of drilling done at Lindsay's, but further work was needed to help define a suitable underground resource.
Earlier this year KalNorth officially opened the Lindsay gold mine and said it planned to start mining quickly so it could self-fund future growth and development.
“We've chosen a different path to a lot of other little companies,” McKinstry told Australian Mining at the time.
“A lot of the others will keep spending money to build up ore reserves. We've chosen to dive in and try to get a cash flow generated early so that we can grow by self-funding more exploration.”