Eastern pours gold at Davyhurst

Eastern Goldfields has poured first gold at its Davyhurst operation near Kalgoorlie, amid a looming court battle against the project’s refurbishment contractor, GR Engineering Services.

Eastern began processing at the Davyhurst mill earlier this month following completion of the commissioning phase of the project, with first gold achieved today marking the first time Davyhurst has produced gold since 2008.

“The CIP circuit will now have cyanide added to it as well as the loading of carbon,” Eastern said in a statement.

“The leach circuit will also have cyanide added to it and heating has commenced of the CIP elution circuit.

“The first gold pour from the CIP circuit is expected to occur this Thursday.”

Chairman Michael Fotios said he was delighted to announce the first gold pour at the processing facility.

“This is a very significant step in our journey and underlines the hard work done by all involved in this project,” Mr Fotios said.

“Mining operations continue to progress well, building a substantial supply of low-to-medium grade ore ready to support the ramp-up in production.”

Earlier this month, GR Engineering launched Supreme Court proceedings against Eastern, seeking $10 million in relation to its contract for the refurbishment of Davyhurst.

Eastern has disputed the claim and said it would vigorously defend the proceedings and could counterclaim its rights to damages and costs.

Eastern shares were 1.5 per cent higher to 32 cents each at 1pm.