Ramelius Resources has been given the go ahead for the commencement of mining at the Kathleen Valley gold project.
The project is located approximately 50 kilometres north of Leinster.
It has began operations following the receipt of the final outstanding statutory approvals late last week.
The miner will begin site mobilisation and infrastructure work immediately.
Open pit mining is slated to commence by July 1st, with first ore trucked to the Checker mill at Mt Magnet in the September quarter.
Ramelius chief Mark Zeptner welcomed the news.
"As planned, a key element of our production strategy has fallen into place with final approvals received from the relevant authorities, allowing project commencement in the current June 2015 quarter," Zeptner said.
"Our selected open pit contractor Watpac has commenced mobilisation to site and we are now finalising other related contracts and agreements [such as fuel supply, flights and accommodation, ore haulage, grade control drilling, and sample assaying]."
Kathleen Valley has a mine life of 1.5 years, with a mineral resource of 163,000 ounces, and a reserve grade of 4.1 grams per tonne with an expected recovery rate of 95 per cent at an all in sustain cost of $936 per ounce.
Ramelius predicts cash flows from the mine of around $27.8 million, at a nominal $1500 per ounce gold price.
Zeptner went on to state that "in the current environment, it is pleasing to be able to kick off a new project with the associated employment and royalty benefits for the state, as well as the strong early cash flows that a high grade, low cost gold project like Kathleen Valley will deliver".
The miner is now working towards finalising the last arrangements for underground mining its Vivien gold project.