Meeka Metals (ASX:MEK) is ready to kick off production at the Murchison Gold Project in Western Australia, after receiving the final approvals of its mining proposal.
No further permitting is required from the company, and construction has now begun of the haul road between the processing plant and the open pit mining area.
Meeka Metals, which has a market capitalisation of $66.67 million, says conducting construction allows for mining to begin in March 2025.
Managing Director Tim Davidson says securing approvals is a major milestone and the company can move forward with full development of the Murchison Project.
“Work to get the camp installed and commissioned is well underway and the haul road between the processing plant and open pits is also under construction, with open pit mining planned to commence early in 2025,” Davidson says.
The company expects to conduct grade control drilling of the shallow oxide open pits at Turnberry and St Anne’s to expedite production and improve productivity at the end of this year.
In December 2024, Meeka Metals will also update the Definitive Feasibility Study (DFS) with a re-optimised production plan for the increased processing capacity.
Once completed, the company intends to begin process plant commissioning in June 2025.
The Murchison Project’s DFS focuses on restarting the fully permitted Andy Well mill, and outlines the company’s strategy and strong financial outcomes. These include a post-tax net cash flow of $431 million, post-tax net present value of $244 million, and a post-tax internal rate of return of 100% over an initial nine-year production plan.
Meeka Metals wholly owns the Murchison Gold Project, which has a combined 281km2 landholding that hosts a 1.2 million ounce @ 3 grams per tonne gold mineral resource on granted mining leases.
Write to Aaliyah Rogan at Mining.com.au
Images: Meeka Metals
