Contracts Awarded For Concentrator Construction
The Board of Wiluna Mining Corporation Ltd (ASX:WMX) has approved the Stage 1 sulphide development at its namesake Wiluna Gold Mine in Western Australia.
The staged development will see the company transition from its current production profile of producing 62kozpa from mining free milling ore through the current 2.1 Mtpa CIL processing facility, initially producing 100kozpa-120kozpa of gold and gold in concentrate.
This will be implemented using the current, recently refurbished crushing circuit, the previously expanded mill circuit and a new 750ktpa concentrator by October 2021.
The company then intends to increase production of gold and gold in concentrate by, at a minimum, doubling the mining rate and the concentrator to produce circa 250kozpa by the end of 2023/early 2024.
Executive Chairman, Milan Jerkovic, said that since the company’s last quarterly report several significant milestones have been met, including the approval of the concentrator construction works and the company entering an EPC contract with GR Engineering Services Limited (GRES). “
I’m pleased to report that significant progress has occurred surrounding the sulphide development plan,” Mr Jerkovic said.
“A significant hurdle was met when the Board of Directors approved the construction of the concentrator and the appointment of GR Engineering to undertake the EPC contract for construction.
“The timetable is confirmed and the capital requirements for Stage 1 will be fully funded with the expected draw down of the Mercuria second tranche debt facility and work will commence immediately with commissioning planned for September 2021.
“The challenge now is to deliver on Stage 1 and scope out the optimum size for Stage 2 given the considerable size of the Wiluna orebody. This will take shape in the Feasibility Study which is currently being undertaken.
“We are now exactly halfway through our 24 months strategy to turn the Company around, deliver real value to our shareholders and maximise the true potential of the Wiluna Mining Complex.
“We are delivering on our promises and we plan to execute with precision. The sheer size of Wiluna, which is now the 7th largest gold district under single ownership in Australia, based on JORC Mineral Resources, throws up challenges but nothing worthwhile comes easy and we believe the prize for shareholders of developing this project in a systematic, thorough and staged manner to become a Tier 1 asset in a Tier 1 jurisdiction will be worth it.”
