Companies Will Work Together On Underground Development In Western Australia
Wiluna Mining Corporation Limited (ASX WMX) has formally agreed to enter a five year alliance with world leading contractor Byrnecut Australia Limited for the performance of underground development and production mining services at the Wiluna Mining Complex.
Wiluna Mining has commenced a three year, staged development plan that will see it being capable of treating all the ore types at Wiluna through four processes including:
- Existing 2.1Mtpa CIL process plant;
- 750,000 tpa flotation and concentrator which is commencing construction this month and will be commissioned in October 2021 scaling up to 1.5 Mtpa capacity by FY2024;
- Gravity circuit; and
- Tailings retreatment plant.
On conclusion of the staged development plan, which is being developed to match the rate of the underground mining development, Wiluna Mining will be capable of processing all its ore at the Wiluna Mining Operations and will be producing approximately 250kozpa. Most of the gold at this stage will be produced as a concentrate however gold doré produced on site in parallel to concentrate sales will be continued to improve and optimise operating margins.
Wiluna Mining’s, Executive Chair, Milan Jerkovic, said a key to this development will be Byrnecut who will be responsible for development and eventually the mining of the underground mine at the Wiluna Mining Centre. Byrnecut is a world leader in underground mining and development and WMX is delighted to be partnering with them.
The alliance will also allow WMX to amortize significant agreed mine capital and establishment costs over the five year alliance period and provides the framework and certainty to a long term seamless integrated approach to both mine planning and mining services execution to ensure the best outcomes and risk mitigation.
“We are pleased to enter into the five year alliance with a world class mining contractor in Byrnecut,” Mr Mr Jerkovic said.
“We see great synergies and efficiencies as well as cost and capital benefits through the alliance. It provides, with a great degree of confidence, that the underground development and ongoing mining will be executed with the highest standard of efficiency, safety, timeliness, and profitability.
“We look forward to working with Byrnecut to transitioning the Wiluna Mine, once again, into one of Australia’s biggest and most profitable gold mines.”
