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(Alliance News) - Resolute Mining Ltd said on Wednesday it has begun upgrading its Ravenswood gold mine in Australia with the aim of increasing its capacity to five million tonnes per annum by the end of 2019.
In the first stage of the expansion, the miner will aim to process stockpiled material in order to achieve a target production of 80,000 tonnes at a cost of AUD1,600, about GBP844, per ounce of gold. This would ensure the project generates positive operating cash flow during the other stages of the upgrade programme.
This will include the recommissioning of a third grinding mill at a processing plant, which will ensure the target processing rate for mine of five million tonnes per annum. The recommissioning has begun, Resolute said, and it is expected to be operational by the end of 2019. The project currently has the capacity to process three million tonnes per annum.
The company said it has invested AUD6.0 million in the first stage of the expansion project, and a final investment decision in respect to the upgrade is expected in late 2019, Resolute said.
It is also continuing a strategic and technical review of the Ravenswood expansion as it targets efficiency improvements to deliver a production 200,000 ounces annually for 15 years.
Shares in Resolute Mining were up 3.2% at 96.00 pence each in London on Wednesday afternoon.