Kidman Resources has received planning approval for open-pit production at its Burbanks gold project near Coolgardie in Western Australia.
Following approval, mining is expected to start with immediate effect.
Kidman expects that the operation will supplement the existing underground production, as well as provide the company with better cashflow.
Kidman expects to produce 4,552oz at 4.32gpt from the starter open-pit at Burbanks during December.
Simultaneously, the company is continuing to produce ore from the Burbanks underground mine, which will be processed over the December quarter.
Resource drilling has moved underground to the 1280 level to grow the Mineral inventory and will underpin a mine plan, including production and cost forecasts for the underground mine.
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Kidman Resources managing director Martin Donohue said: "This is an important event both because it means Kidman is generating cashflow and it shows that we are delivering on the undertakings we have given to the market since acquiring the project in April this year.
"While the open-pit programme is relatively small at 4,552oz, it supplements the current underground production and the additional free cashflow it will generate next quarter is substantial for Kidman as it transitions into full-production."
Recently, the company announced an initial combined indicated and inferred mineral resource of 99,000oz at 5.6gpt.
Kidman is currently establishing the Burbanks Gold Mine near Coolgardie in WA with production slated to start in September.
Image: Burbanks underground gold ore stockpile now being processed. Photo: courtesy of Kidman Resources Limited.