Join our daily newsletter At The Bell to receive exclusive market insights
- Laneway Resources (LNY) has announced mining operations will soon recommence at its Agate Creek Gold Project in Queensland
- Contract mining is set to commence in October at the Project’s Sherwood deposit, with 43,000 tonnes of ore to be mined
- The ore will be toll treated at Lorena Gold Mine’s processing plant, with work expected to begin in November
- Laneway has awarded the mining contract to MAAS Group, with final pit designs and mine plans now completed
- The proceeds from the mining operation are expected to hit Laneway’s bank account before the end of 2020
- Shares in the company are trading up 12.5 per cent at 0.9 cents
Laneway Resources (LNY) has revealed mining operations will soon recommence at its Agate Creek Gold Project in North Queensland.
A total of 43,000 tonnes of ore grading 6.5g/t for 8950 ounces is expected to be mined in two stages at Agate Creek’s Sherwood deposit.
The company has awarded the mining contract to MAAS Group, with final pit designs and mine plans now completed.
It’s also signed a toll milling agreement with Lorena Gold Mine, to use its processing plant in Western Queensland.
The first stage of ore, totalling 18,000 tonnes, is expected to reach the plant in mid-November and take three weeks to process.
While the second 25,000 tonnes of ore will be stockpiled and scheduled for transportation and processing following the wet season.
Laneway expects to receive proceeds from the first batch of recovered gold within 60 days of mining recommencing at Agate Creek.
“We are very pleased to have finalised the mine plan and contractual arrangements to enable mining of high-grade gold ore at Agate Creek to commence shortly,” Laneway Chairman Stephen Bizzell said.
“With the current high Australian dollar gold prices, we expect very healthy cash generation from this mining campaign beginning in the December 2020 Quarter to support the self-funded ongoing exploitation of the Agate Creek Project,” he added.
Additionally, Laneway believes more mining is possible at Agate Creek, with the Whittle pit optimisation process also generating a much larger Open Pit Shell containing 120,000 tonnes at 5.7 g/t for 22,000 ounces.
Following today’s mining update, shares in LNY are trading 12.5 per cent in the green for 0.9 cents each at 3:32 pm AEST.
