Reed to mine at Meekatharra gold

Reed Resources has announced it will begin mining at its Meekatharra Gold project, and expects production in the final quarter of the year.

 Reed Resources has announced it will begin mining at its Meekatharra Gold project, and expects production in the final quarter of the year.

The announcement comes on the back of the miner’s bankable feasibility study (BFS).

According to Reed the project already has an existing three million tonne per annum oxide processing facility and infrastructure.

Subject to the finalisation of debt and equity financing programs, the miner will move into Stage 1 which will focus on the production of 134 000 ounces of gold over 19 months from the Bluebird, Whangmata, Batavia, and Sunrise open pits – which are all within a six kilometre radius of the processing mill at Yaloginda.

In Stage 2, which is scheduled for early 2014, the miner will have production from eight existing and identified reserves at Yaloginda and Paddy’s Flat.

By Stage 3 Reed will evaluate the Stage 2 open puts and continue production.

Reed’s managing director Christopher Reed said "the completion of the BFS and the decision to commence operations are significant achievements…with strong gold prices and appropriate finance structuring, the economic viability of the project is robust.

It has predicted it will need around $45 million to begin mining.

 

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