Laneway Resources Limited (ASX: LNY) has commenced carting of high-grade ore from its Agate Creek gold mine in North Queensland to the Georgetown Gold Processing Plant and crushing of the ore at Georgetown.
Highlights
- Haulage of high-grade ore underway from Laneway Resources’ 100% owned Agate Creek Gold Project to Georgetown Gold Processing Plant
- Crushing of high-grade ore at the Georgetown Gold Processing Plant has now commenced
- Georgetown Gold Processing Plant refurbishment progressing well with processing of Agate Creek ore through the plant on schedule to commence mid-August with first gold pour expected shortly thereafter
The commencement of haulage and crushing of high-grade ore follows on from the recommencement of mining at Agate Creek in June after receiving the approval for the Environmental Authority amendment to allow Agate Creek ore to be treated through the Georgetown Processing Plant.
Mining operations are continuing to perform well with daily mining rates at or above targeted levels. The first phase of the refurbishment of the Georgetown Gold Processing Plant in North Queensland continues to progress well with site works and electrical and mechanical refurbishment programs remaining on track to enable the commencement of processing of ore and first gold pour in August.
Laneway has entered into a Share Sale Agreement to purchase Masterson Minerals Pty Ltd, owner of the Georgetown gold processing plant and an extensive portfolio of mining and exploration tenements with settlement of the acquisition scheduled for August.
Managing Director, Brad Gordon, said the imminent restart of the Georgetown Gold Processing Plant will enable Laneway to take control over its gold production future, generate material free cashflow and begin building the platform for a regional gold processing centre.
Forecast gold production for FY23 is 15,000 ounces with production expected to increase in FY24 to 40,000 ounces.
“With the carting of high-grade ore from Agate Creek underway, the commencement of crushing of the ore at Georgetown and the continuing good progress on the works for the restart of the Georgetown plant, Laneway is continuing its rapid progress towards commencement of gold production which will provide an ongoing revenue stream that will establish a base for unlocking the considerable value in our project portfolio,” Mr Gordon said.
Transitioning To Gold Producer
As part of its refreshed strategy as the company transitions from explorer to producer, Laneway will be seeking shareholder approval to change the company’s name to Savannah Goldfields Limited and to also consolidate the company’s share capital on a 1-for-40 basis.
For further information please visit: https://www.lanewayresources.com.au
