Jan 13, 2020

Evolution Mining cuts Mount Carlton gold forecast

Evolution Mining cuts Mount Carlton gold forecast

Evolution Mining has scaled back production forecasts for the Mount Carlton gold mine in North Queensland this year.

The company revealed last week that the West and East Lode orebodies in the V2 pit being mined at Mount Carlton are narrowing at shallower levels than expected.

“The unanticipated loss of ore tonnes in areas that were planned to be mined over the remainder of FY20 are expected to result in an estimated production range of 70,000 – 75,000 ounces for Mount Carlton,” it said in a statement to the ASX on Friday.

The original FY20 guidance was 95,000 – 105,000 ounces of gold.

The company is also in the process of re-estimating the Mineral Resources and Ore Reserves at Mount Carlton, with the results to be announced next month (February 12).

Underground development advances

A $60 million project is underway to extend mining operations at the gold site to at least 2025, including development of a new underground mine and changes to the processing plant.

Evolution said the underground development broke through to the East Lode early this month (January 2020) and encountered the orebody where expected.

Ore development will continue through the March 2020 quarter and stoping is expected to begin in the June 2020 quarter.

Meanwhile the company says drilling is expected to commence at the Crush Creek project, 30km south of Mount Carlton, during the June quarter.

Evolution Mining entered into an earn-in agreement with private entity Basin Gold in September last year over the project, 10km north-west of Collinsville.

It will earn a 70 per cent interest in the project by providing $7 million of exploration expenditure over a two-year period.

Evolution said the initial drilling program aimed to confirm and extend high-grade vein style mineralisation intersected in historic drilling at Crush Creek.