Three months ago, mid-tier Australian gold producer Evolution Mining acquired Barrick Gold’s Cowal mine in New South Wales for US$550 million.
Located in Central NSW, 32 kilometres north of West Wyalong and 350 kilometres west of Sydney, the Cowal mine is an open pit operation mined by a fleet of dump trucks, excavators and ancillary equipment.
The mine, which has 1.555,000 ounces of proven and probable gold reserves, produced 268,000 ounces of gold in 2014 and is expected to produce 250,000-280,000 ounces in 2015.
Yesterday, Evolution Mining announced a 40% increase in the ore reserve at the mine, releasing an ore reserve estimate of 72.58-million tonnes, grading 0.93 g/t gold for 2.18-million ounces of contained gold – which is an increase of about 630 000 oz. of gold compared with ore reserve estimates made by previous owner Barrick Gold.
The mineral resource at the mine has now been estimated at 162.87-million tonnes.
“The potential to increase resources and reserves at Cowal was one of a number of compelling value enhancement opportunities that attracted us to acquire this world-class asset. The application of Evolution’s gold price assumption of A$1,350/oz. has contributed to a significant 40% increase in Ore Reserves to 2.18 million gold ounces. By incorporating our gold price and mining cost assumptions we have also lifted Mineral Resources by close to 50%,” said Evolution’s Executive Chairman, Jake Klein.
“Cowal is a high-quality asset and an exceptional cornerstone on which to grow our business. We see potential for further Mineral Resource and Ore Reserve upside at Cowal with the application of our exploration expertise to near-mine and regional opportunities.”
Evolution Mining took ownership of the NSW mine on 24 July 2015.
The announcement comes just a few days after Evolution acquired La Mancha Australia from La Mancha Group International BV, a Luxembourg-based gold producer owned by Egyptian billionaire Naguib Sawiris.