Australian gold mining company Evolution Mining (ASX:EVN) has begun gold production ahead of schedule at the Cowal Gold Project in New South Wales.
The company reports the first underground stope began to be mined and processed this month, with continued ramp up of the underground expected over the remainder of this financial year.
This is 3 months ahead of the previously announced original schedule of the June 2023 quarter. Evolution says the project remains within the original $380 million budget, and notes the completion of the accommodation village, and commissioning of the paste plant remain on track for the June quarter.
Commenting on the development, Evolution Mining Chief Executive Officer (CEO) and Managing Director Lawrie Conway says: “We have achieved a major milestone at Cowal with the early commencement of production from the new underground mine. It is a credit to the project team to be able to commence production ahead of schedule and on budget in the current inflationary market conditions for project development and construction.
“It is a credit to the project team to be able to commence production ahead of schedule and on budget in the current inflationary market conditions for project development and construction”
We are now on the pathway to increase Cowal’s production from the current FY23 guidance of about 275,000 ounces to FY24 outlook of about 320,000 low-cost ounces.”
Evolution also reports the Ernest Henry recovery plan is continuing with ‘good’ progress being made. As the recovery plan continues, the company says the impact on the Group FY23 Guidance will be fully understood and communicated.
As announced on 13 March 2023, the Ernest Henry Project in Queensland was affected by a regional weather event which saw water enter the mine workings. At the time, Evolution reported work was being undertaken to restore mine production as soon as possible, and projected mining activities would restart in about 6 weeks.
The company also notes its liquidity remains strong with the cash position at the end of February ahead of plan, and the $525 million revolver facility being undrawn.
Evolution Mining is an Australia gold miner that operates 5 wholly owned mines across Australia and in Canada. The company’s portfolio includes the Cowal Project in New South Wales, the Ernest Henry and Mt Rawdon projects in Queensland, the Mungari Project in Western Australia, and the Red Lake Project in Ontario, Canada.
Evolution says its FY23 gold production guidance is 720,000 ounces at a ‘sector-leading’ all-in sustaining cost (AISC) of $1,240 per ounce.
Images: Evolution Mining Ltd
