Monday 19th Aug, 2019

Queensland grants new mining leases for $150M mine expansion

The Queensland Government has granted Resolute Mining nine new mining leases, which will support its $150 million project to extend the life of its Ravenswood gold mine operations.

Resolute plans to expand production at the historic gold town of Ravenswood. The company’s existing Mount Wright underground mine is due for closure next year, with the expansion adding open pit mining at the adjoining Sarsfield and Buck Reef West deposits.

Resolute’s expansion plans were given prescribed project status in late 2016, attaining the support of the state’s independent Coordinator General to reduce red tape.

Production will be fast tracked through the use of Resolute’s existing processing plant and equipment, with Buck Reef West expected to be in production by July and reach capacity by 2024.

Queensland Mines Minister Anthony Lynham said the leases acknowledge Resolute Mining’s significant contribution to the historic gold town.

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“The company has pre-funded and commenced refurbishing and relocating the historic Ravenswood State School, providing new sporting facilities and helped preserve this former gold town’s cultural heritage,” Lynham said.

“For Resolute, it means they can continue operations smoothly as one mine reaches the end of its lifecycle and another begins.

“For the 280 strong workforce, it means another 13 years of employment, as well as an additional 100 construction jobs for the new mine.”

Resolute’s Managing Director and Chief Executive Officer John Welborn was pleased to receive further support from the Queensland Government.

“These new mining leases support our plans to expand production from our Ravenswood mine and continue a strong partnership with the government and the local workforce and community that commenced in 2004,” he said.

“We continue to create value at Ravenswood and we expect the ongoing strategic review will now be able to incorporate expanded production rates as we prepare for an investment decision on the Ravenswood Expansion Project in the second half of 2019.

“Ravenswood’s future is increasingly secure as a successful large-scale long-life open-pit gold mine that will provide local employment, regional economic stimulus, community benefits, revenue for the State Government, and benefits for Resolute shareholders.”

Ravenswood, located 150 kilometres south-west of Townsville, has a mining history that can be traced back to 1868. It has produced more than three million ounces of gold since.

In its heyday in 1911, the town had 2010 residents and 48 hotels. Today, there are around 200 residents and the town site is a national heritage area.