Great Divide Mining (ASX:GDM) has completed its first gold pour at the Challenger Gold Mine within Adelong Gold’s (ASX:ADG) namesake project, marking the second completion under the joint venture’s share sale agreement.
For funding operations to meet gold production within the first 12 months, the company now holds 51% interest over the Challenger Mine for providing contractors and reactivating the recovery plant.
A gravity recovery process was involved to reactivate the plant using no cyanide or chemical additives to allow the joint venture to efficiently deliver gold at a low cost.
Great Divide intends to commercialise production at the site, with resource definition and extension drilling plans to be finalised shortly.
CEO Justin Haines says the company has demonstrated its commitment to evolving a cash-flow mining business in less than two years since its initial public offering.
“We have produced first gold and moved to majority owner of an operating gold mine and processing facility,” Haines says.
“Our focus for the next period is finalising works and ramping up to commercial scale production at Challenger.”
Adelong Managing Director Ian Holland says the first pour of gold from the Challenger Mine is a “landmark” moment for the company.
“Our transition from explorer to producer is now a reality thanks to the hard work and commitment of the GDM team. We’ve reached first gold safely, efficiently, and on schedule,” Holland says.
“This outcome validates the joint venture model and positions the Challenger Mine as a key nearterm cash generator within our broader strategy.”
Adelong now intends to shift focus over to its Lauriston Gold Project in Victoria, as the joint venture will continue to process remnant ore and tailings at the recovery plant.
Write to Maddison Elliott at Mining.com.au
Images: Great Divide Mining
