Saracen achieves record gold reserves on path to 400,000oz

Image: Saracen Mineral Holdings.

Saracen Mineral Holdings has updated its growth strategy, announcing that its reserves have risen by 32 per cent to a record 3.3 million ounces.

The new reserves underpin a seven-year production profile of 400,000 ounces a year from financial year 2021, after the Carosue Dam mill in Western Australia is expanded to 3.2 million tonnes per annum.

The update also includes a further six million ounces in resources, highlighting the additional growth potential at and around the company’s mills in Western Australia.

With a further $50 million budgeted for exploration in the current financial year, Saracen has reported strong potential to establish over 10 years of mine life at production of 400,000 ounces a year.

Saracen managing director Raleigh Finlayson said the company was now set up to generate substantial production and cash flow for many years, fully-supported by low-cost reserves close to its exiting mills.

“To define over one million additional ounces in reserves in just 12 months is an outstanding result, to do it at an average cost of $30 an ounce and have all reserves at or near our existing mills is exceptional,” he said.

“Saracen’s future is now fully under-written by long mine life and reserves and we have a pipeline of growth underpinned by an additional six million ounces in resources.”

The company has budgeted $112 million for growth capital this financial year as part of its strategy to capitalise on the increased reserves.

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