WA gold mine set to start production

The Nicholson gold mine is set to recommence mining next month, with the processing plant refurbishment nearing completion.

Pacific Niugini said the construction Nicholson mine, located 35km south west of Halls Creek in Western Australia, has continued to progress well, with ore development on the first ore drive being accessed and revealing "bonanza" gold grades.

The crushing circuit has been fully re-installed and tested and is ready for operation, along with the gravity recovery circuit and gold room.

The permanent power station has also been installed and commissioned, and is ready for commencement of operations.

Pacific Niugini said the final major task is the installation of new mill bearings and the re-commissioning of the mill circuit.

The company said it intends to commence commissioning upon completion of the final refurbishment tasks in the coming weeks and expects first gold production in August.

Paul Cmrlec, managing director of Pacific Niugini, said he is proud of the grit and determination shown by his mining team in the initial development area of the mine.

“This ore system is incredibly rich in grade and is very shallowly tested at the present time. We believe it holds great potential to expand considerably both at depth and along strike,” Cmrlec said.

The mine will produce 30,000 ounces of gold per annum, with 35 full-time FIFO employees.

Pacific Niugini successfully completed a funding package in January which allowed it to fund the construction of the mine.

All-in sustaining costs at Nicholson are expected to total $850/Oz. 

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