ASX-listed gold producer Evolution Mining (ASX: EVN) today announced it has awarded a contract to GR Engineering Services to complete the plant expansion works at its Mungari gold mine in Western Australia.

According to Evolution, these works are expected to total A$155 million and are within the project budget and schedule as part of the company’s previously announced commitment to invest A$250 million to increase the site’s processing capacity from 2 million tonnes per annum to 4.2 million tonnes per annum.

The company said planning is “well progressed,” including initial engineering design and procurement works have commenced, adding that site works are expected to commence in mid-January 2024.

The project has an estimated 30-month construction period including long-lead items and approvals, with commissioning expected by the end of the March 2026 quarter.

The company said that, targeting gold production of 200,000 ounces per annum for the life of the mine, this project is expected to reduce Mungari’s all-in sustaining costs (AISC) by 18% to A$1,750 per ounce and extend the mine life to 2038.

Evolution Mining operates five wholly-owned mines – Cowal in New South Wales, Ernest Henry and Mt Rawdon in Queensland, Mungari in Western Australia, and Red Lake in Ontario, Canada. Financial year 2024 gold production guidance is 770,000 ounces (+/-5%) at AISC of A$1,370 per ounce (+/-5%).

Source: kitco.com

BDST: 1258 HRS, SEP 30, 2023
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