Doray Minerals has started open-pit mining at its Deflector gold project in the southern Murchison region of Western Australia.
The high-grade/low-cost gold-copper Deflector project has an initial mine life of six years.
The project also has significant exploration potential within the under-explored 7km-long 'Deflector Corridor'.
Doray said it is using its experience from the Andy Well gold project to optimise the project's construction, development and operation.
It plans to begin ore commissioning of the new processing plant at Deflector in May with underground mining slated to begin in June.
Doray Minerals managing director Allan Kelly said that the commencement of open-pit mining came less than a year after completing the takeover of Mutiny Gold in March 2015.
Kelly said: "We are very excited to have officially commenced mining operations at Deflector, our second high-grade WA gold operation, and look forward to bringing production online over the coming months."
Following construction and commissioning of the project, the company anticipates combined production from Andy Well and Deflector to be 140,000oz per year.
Doray is targeting an average all-in sustaining cost of less than A$1,000/oz across the projects.
The company acquired the Deflector project following its takeover of Mutiny Gold in February 2015.
In May 2015, Doray approved the development of its Deflector gold mine and aimed to increase its targeted production to around 160,000oz of gold per year.