Bendigo Mining’s Kangaroo Flat mine is on track to achieve its full year target of between 30,000 and 40,000 ounces of gold by the end of 2009, the company said yesterday.
At the Paydirt 2009 Resources Victoria Conference in Melbourne, Bendigo’s managing director Rod Hanson said the mine had produced 23,000 ounces of gold in the six months to June 30 and was “tracking above plan.”
“We are now making cash on this production, with total costs of around $640 an ounce,” he said.
“However, with some $300 million of capital investment sunk into the Kangaroo Flat site, we need to maintain this level of production as a minimum while we continue to explore and build throughput.
“The onsite mill is under-utilised and is operating at less than one third capacity, so there is plenty of opportunity to boost production by optimising and expanding the mine.”
Production at the mine resumed last year with a new underground operation, which comprise multiple reefs with medium to high grade prospects.
“This is a very large goldfield with numerous targets and we need to now really chase these prospective rocks,” Hanson said.
“We have assigned two drill rigs specifically for exploration work at the mine.”
Hanson said there was also considerable exploration potential at the company’s recently acquired $8 million Henty gold mine on the west coast of Tasmania.
“The mine’s narrow ore bodies are not dissimilar to those at Kangaroo Flat, so there are technical similarities which will allow us to optimise our operations,” he said.