Laneway Resources Limited (ASX:LNY) has successfully achieved the first gold pour at the Georgetown Gold Processing Plant from the processing of high-grade ore mined at the Sherwood deposit within Laneway’s 100% owned Agate Creek Gold Mine in North Queensland.
Highlights
- Laneway’s first gold pour has occurred at the recently refurbished Georgetown Gold Processing Plant from high-grade ore sourced from Laneway’s 100% owned Agate Creek Gold Mine.
- The first gold pour has been achieved in line with mining and processing schedules. The bullion poured has been recovered by Gravity methods only at this stage from the 740 tonnes of Agate Creek Ore that has been fed into the plant for processing to date.
- The first doré bar weighed in approximately 3.9 kg of Au:Ag bullion
- Ore from the current mining at Agate Creek commenced feeding into the processing circuit at Georgetown last week. Approximately 30,000 tonnes of ore at 8 g/t Au is being mined from the current pit at Sherwood.
- Laneway entered into an agreement earlier this year to acquire the Georgetown Project and is now in control of all of its own mining and processing operations.
- Mining is progressing well at Agate Creek with ongoing transportation of ore to Georgetown for processing also continuing.
- Laneway anticipates material positive cash flow from its mining and processing activities.
“This first gold pour is another significant milestone for Laneway on its journey to becoming a substantial gold producer,” Managing Director, Brad Gordon, said.
“Following entering into the agreement to acquire the Georgetown Project including the Georgetown Gold Processing Plant earlier this year, Laneway has successfully and rapidly executed on the refurbishment and recommissioning of the plant and the recommencement of mining at Agate Creek.
“The strong cashflows that can now be generated will establish a solid base for unlocking the considerable value in our project portfolio.”
The company has brought the Agate Creek project into production quickly following the entering into of the agreement to acquire the Georgetown Project earlier this year.
The refurbishment of the Georgetown Processing Plant has been completed in line with expected timeframes. The first gold pour achieves a significant milestone for the company as it has transitioned from explorer to developer and now producer.
The first bullion bar will now be despatched to the Perth Mint for refining. Once refined at the Pert Mint, the gold purity of the bar will be determined. This bullion was recovered from gravity methods only from the ore processed to date as the carbon in circuit is still loading with gold and the on-site carbon stripping circuit is awaiting the installation of some further parts to allow stripping of the loaded carbon on site.
Contract stripping of the carbon will be undertaken through a third party for the next 6-8 weeks by which time it is expected the parts to finalise the refurbishment of the stripping circuit will have arrived and be installed, including a newly designed ILR (Intensive Leach Reactor). First ore was fed into the milling circuit on 30th August in line with expectations.
Since commencement of ore processing last week, 740 tonnes of ore has been crushed, milled and is being processed. Head grade assays are still pending. Processing rates are currently approximately 18 tonnes per hour day shift only – a second shift is scheduled to commence later this month allowing 24 hour processing with throughput rates expected to average around 20-22tph.
Processing rates will be dependent on feed grades and ongoing metallurgical performance including recovery.
Mining operations are progressing well with the expectation a total of around 30,000 tonnes @ 8 g/t Au will be mined from the current pit at Sherwood. Further pits to be mined after the current Sherwood pit are in the final stages of planning and approvals. The ore is being transported to and then processed through the Georgetown Gold Processing Plant.
Utilising an existing processing plant has significantly reduced the capital expenditure and time to first gold production for Laneway and establishes a robust platform for enduring cash flow and subsequent growth.
For further information please visit: https://www.lanewayresources.com.au
