Evolution Mining buys interest in Ernest Henry copper-gold operation

2 November 2016 (Last Updated November 2nd, 2016 18:30)

Australian gold miner Evolution Mining Limited has completed the acquisition of an economic interest in the Ernest Henry copper-gold operation.

Australian gold miner Evolution Mining Limited has completed the acquisition of an economic interest in the Ernest Henry copper-gold operation.

All customary conditions precedent to this acquisition have been completed and fulfilled.

Ernest Henry is a copper-gold asset located around 35km north-east of Cloncurry in Queensland, Australia.

This asset is known for its stable, large-scale and cost-effective production.

"Evolution is building a portfolio of high-quality, long-life assets that will prosper through the gold cycle."

Currently, the mine holds a life of at least 11 years.

Ernest Henry has strong potential growth prospects beyond its current reserve life through its large resource base and extension potential at depth.

Ernest Henry is expected to immediately contribute annualised gold production of approximately 85,000oz at a very low all-in sustaining cost, including copper and silver by-product credits.

Evolution Mining executive chairman said: “The addition of low-cost gold production from Ernest Henry to our portfolio gives us exposure to another high-quality, long-life asset that further underpins the future success of our business.

“Evolution is building a portfolio of high-quality, long-life assets that will prosper through the gold cycle.”

The company estimates gold production in 2017 fiscal to be around 800,000oz-860,000oz at A$900-A$960 per ounce.