Ballarat Gold Project Progress Update
Castlemaine Goldfields Limited (ASX:CGT) is currently re-developing the Ballarat Gold Mine, with activities focused on underground mine development and gold processing plant re-commissioning such that first gold bullion production can be delivered on schedule in September this year. approximately 2,300 tonnes of low grade gold ore has already been mined and bought to surface to provide material for the processing plant re-start.
The company completed a 15,000 metre diamond drill program last year and those results allowed the company to quickly move through the planning and decision making process. A mining contractor – Pybar – mobilised to site mid March and to date has achieved approximately 590 metres of underground mine tunnel development (extending the existing Woah Hawp Decline, already some 500 metres vertically underground – refer Figure 1). This development is on schedule. The first of the identified quartz reefs for mining in the near-by Llanberris compartment is now only 115 metres from this existing development and will be accessed in August.
The company now has sufficient mobile fleet capability to commence ore mining, with the delivery of a new 3m3 loader and a second hand 6m3 loader occurring in July, complementing the existing loader, two 40 tonne capacity trucks, and 2 jumbo drills.
The company commenced an aggressive recruitment campaign during Q2 of this year, and has successfully established a mining and ore processing workforce of sufficient size and skill set to allow initial ore mining and processing to occur. Safety, environment and administrative support staff have also been recruited. Workforce numbers will continue to increase as production activities ramp-up during Q4 2011 and into Q1 2012, by which time it is anticipated that steady state operations will be achieved at an annualised production rate of approximately 50,000 ounces of gold.
Approximately 35 metres of in-reef development has been achieved by the company’s mining crews to date, producing 2,300 tonnes of low grade ore, which will be used in August for pre-commissioning through the processing plant. This material was mined from a known zone in the Sovereign compartment developed by the mine’s previous owner. Currently, the processing plant crews are undergoing operator training.
The processing plant refurbishment works, which commenced in July, are on schedule for completion in August, with plant re-commissioning to then follow.
Recent (and continuing) successful diamond drilling underground on the Sulieman Line of mineralisation offers the prospect of a third ore source, located within close proximity to current and planned future mine development, and mine planning is currently underway to assess this.
It is anticipated that first mill feed will be treated during August, and gold bullion production thereafter in September. This is great timing given the current high gold prices and sentiment for this precious metal.
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