Kalgoorlie Mining ramps up production at Australian gold mine

13 December 2011 (Last Updated December 13th, 2011 18:30)

Kalgoorlie Mining Company has ramped up production at the Bullant Gold Mine located northwest of Kalgoorlie in Western Australia, as it moves into the next phase of operation.

Kalgoorlie Mining Company has ramped up production at the Bullant Gold Mine located northwest of Kalgoorlie in Western Australia, as it moves into the next phase of operation.

Development work restarted in June 2011 at the gold mine, with 1,489 metres of development achieved in the first six months. The initial focus was the East Lode which has now been established through short access drives off the main decline.

Barrick Gold, the previous operators, had mined down to the 6,185 level (195m below surface) of the East Lode.

The southern block of the Main Lode is the first new area to be targeted along with the second new area which is below the existing workings on the Main Lode.

Kalgoorlie Mining has planned 1,037 metres of development over the next three months, which is expected to yield 36,430 tons at 3.75 g/t with an additional 21,769 tons of stoped ore at 4.78 g/t Au.

The company will commence its sixth ore delivery, which is the largest to date, estimated at 13,411t of ore @ 4.37g/t) campaign to Barrick's nearby Kanowna Belle facilities this month.

The ore delivery is in line with its ore purchase agreements between Kalgoorlie Mining and Barrick Gold.

Currently, the company is continuing to progress options towards the funding of the construction of the Stage 2 gold plant.

The construction of the gold plant will enable the company to boost production significantly (+60,000 oz Au p/a).

The company said work has already commenced on access to the 5703 Main Lode ore horizon with the first ore expected prior to the end of December 2011.