Evolution Mining plans to pour millions into Red Lake gold complex

Australian miner spending three years to boost gold production, increase plant capacity and extend mine life by 15 years

australia Evolution mining plans to invest significant money in its Red Lake gold mining and processing operations over the next three years.

The board of directors of the company recently approved a plan with a three-year investment schedule for Red Lake with the intention of increasing gold production to over 350,000 ounces per year by 2026 and extending the mine life in the prolific Northwest Camp by more than 15 years from Ontario.

In a July 16 press release outlining its strategy, Evolution said the May acquisition of its Red Lake neighbor – the Bateman mine from Battle North Gold – served only to “accelerate” its growth plan. aimed at restoring Red Lake in one of Canada’s major mining districts.

With Bateman in the fold, Evolution’s other operations consist of the Red Lake, Campbell and Cochenour mines with a significant combined mineral resource of 11.1 million ounces and an ore reserve of 2.9 million ounces.

The Bateman mine contributed 733,000 ounces of mineral resources and 635,000 ounces of reserves.

The current mine life is 13 years, but Evolution, of course, wants to extend it.

When Evolution acquired the Red Lake complex at Newmont in November 2019, the company pledged to invest $ 100 million in existing operations and an additional $ 50 million in exploration.

To mine a new gold system, the company is spending between $ 160 million and $ 175 million between 2022 and 2024 to build a surface ramp to access two new mining fronts in the Upper Campbell area of ​​the Red Lake mine.

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Campbell Young Dickenson’s decline will extract 750,000 tonnes of ore by 2024. Ultimately, this will increase to over one million tonnes by 2026.

At its McFinley deposit, between $ 65 million and $ 85 million will be spent on underground infrastructure work between 2022 and 2024. A bulk sample will be taken next year.

The company is working on a study to increase the capacity of the Campbell plant to more than 1.5 million tonnes per year over the next three years. Between $ 30 million and $ 40 million will be spent on this upgrade.

The same is true for the Bateman plant, with plans to expand to 900,000 tonnes per year beyond 2024, giving Evolution the combined grinding capacity at Red Lake to over 2.0 million tonnes. per year. The company has set aside between $ 50 million and $ 60 million for improvements at Bateman.

Capital investments are also being made to upgrade and consolidate tailings storage facilities at Red Lake starting in 2023.

On the exploration side, the company is studying a target in the Upper Campbell and Lower Red Lake areas of the Red Lake mine.

Evolution said the target is around 60,000 to 70,000 tonnes, grading 5.0 to 5.5 grams per tonne for 9,600 to 15,400 ounces, but exploration has not been sufficient for calculate a mineral resource. Part of the three-year mining plan includes diamond drilling of this target.

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