Copper, Gold, News, Quarterly and half yearly results

Solid performance for Evolution Mining

Maiden drilling at Platina Resources’ Xanadu gold project in WA has confirmed a large-scale gold system over 600m by 600m in all directions.

Despite weather disturbances on its Ernest Henry mine in Queensland, gold company Evolution Mining has recorded strong results in its latest quarterly report.

Operational highlights from the March 2023 quarter include:

  • gold production of 163,910 ounces and a copper production of 9668 tonnes
  • all-in-sustaining costs (AISC) of $1291 per ounce of gold
  • an operating mine cash flow of $270 million
  • the Red Lake operation improving by approximately 13 per cent in the quarter to 28,178 ounces through a seven per cent grade increase and a five per cent increase in processed tonnes.

Evolution said the impact of the weather event at Ernest Henry, located in the north-west of Queensland, reduced gold and copper production in the March quarter by approximately 6400 ounces and 4100 tonnes, respectively.

The Ernest Henry recovery plan remains on track to recommence mining activities in the previously announced six-week timeframe.

Before the weather disruptions at Ernest Henry, Evolution was tracking to the lower end of group production guidance and below the AISC guidance of $1240 per ounce.

Additionally, copper production was tracking above the guidance of 55,000 tonnes by approximately 2000 tonnes.

Red Lake, Evolution’s Canadian gold mine, looks set to continue its improvement to attain a stable production rate and lower cost position. That progress is expected in the June quarter with production anticipated to increase to at least 35,000 ounces.

Evolution Mining chief executive officer Lawrie Conway said the March quarter performance was solid despite the weather impacts at Ernest Henry.

“The team has continued to perform exceptionally to safely resume mining activities and I am extremely proud of their response,” Conway said.

“The events at Ernest Henry are the main reason for the updated guidance of 660,000 ounces at an AISC of $1390 per ounce.

“Once Ernest Henry returns to normal operating rates, Evolution will resume its sector leading low-cost high-margin position.”

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