Total
0
Shares
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Large-cap explorer Resolute Mining has today moved one step closer to mining its open-pit project in Queensland
  • The company was awarded an environmental permit from the State Government, which will see it mine out the “Ravenswood” project — located less than 100 kilometres from Townsville
  • Chief Executive John Welborn has given estimates that the project could produce 200,000 ounces of gold over a ten-year period
  • Major boxes to begin production on-site are checked, with minor hurdles remaining in the first half of next year
  • However, shares in RSG have fallen today by 5.7 per cent — trading at $1.12 each

Large-cap explorer Resolute Mining won over the Queensland Government today as it was awarded a highly sought-after environmental permit.

The approval was awarded for the company’s wholly-owned Ravenswood project, located less than 100 kilometres from Townsville.

“I thank the Queensland Government for their strong ongoing support,” Resolute Chief Executive John Welborn said today.

“Ravenswood represents an exceptional opportunity for Resolute,” he continued.

The project is slated to hold 1.5 million ounces of gold over a total 14-year life span. Resolute believes it will cost $1097 per ounce to mine and produce.

John Welborn gave estimates today on the company’s performance over the next decade.

“All major approvals are now in place for a development plan that can accommodate an expansion of annual production to 200,000 ounces of gold over a ten-year mine life,” he said.

Today’s awarded permit takes immediate effect.

The open-pit Ravenswood project
Image sourced from Resolute Mining

“With available gold resources of almost six million ounces, decades of operational excellence in open-pit mining, efficient processing infrastructure, low-cost grid power, and a stable skilled local workforce, [Ravenswood] has obvious potential to deliver considerable economic benefits to Resolute shareholders, the local community, and the Queensland Government,” John said.

Advancing the Ravenswood project has been nothing short of speedy for the company. Heritage agreements were secured in late 2017, with the Queensland Government awarding an extension to the project’s scope less than a year later.

Mining leases for the project were then awarded to Resolute earlier this year in June.

The company admitted although major approvals at Ravenswood are in place, minor hurdles still remain before mining will take place. Resolute Mining expects every box to be checked by the first half of the 2020 calendar year.

In the meantime, a strategic review is underway to confirm the 200,000-ounce performance over a ten-year period.

Despite a positive announcement for the big-hitter — shares in RSG have fallen 5.7 per cent on open today, trading for $1.12 apiece.

RSG by the numbers
More From The Market Herald

" Harvey Norman Chairman fires back at concerned shareholder during AGM

Harvey Norman’s Annual General Meeting yesterday caused quite a stir as Chairman Gerry Harvey reportedly lashed out at shareholders.

" Forrest rejects “Wait Awhile” state as home for hydrogen project

Fortescue Metals Group (FMG) Chairman Andrew Forrest said Western Australian was the first choice for the Fortescue Futures Initiative (FFI) hydrogen project, but

" Qantas (ASX:QAN) brings forward international flights to Nov 1

Qantas (QAN) will begin international flights two weeks earlier than planned, on November 1, 2021, after the Federal and New South Wales governments
Insurance Australia Group (IAG) - MD and CEO, Nick Hawkins

" ASIC sues Insurance Australian Group (ASX:IAG) for misleading discounts

Insurance Australia Group (IAG) shares are sinking today after the corporate watchdog announced civil action against an IAG subsidiary for failing to honour