Securing a suite of key approvals from the Western Australian Government for its Black Swan Processing Hub (BSPH) 50 kilometres northeast of Kalgoorlie, Maritana Minerals has cleared a series of major hurdles in its quest to become one of WA's next gold producing companies. The approvals significantly de-risk the project’s development pathway and provide a clearer sight-line towards a final investment decision.
The company says it has now received approvals for its Mining Development and Closure Proposal (MDCP) from the Department of Mines, Petroleum and Exploration (DMPE). In addition, the Department of Water and Environmental Regulation (DWER) has granted a critical Works Approval and a Native Vegetation Clearing Permit, giving Maritana the green light to commence construction.
Maritana is also assessing its power supply options across a suite of grid, diesel, gas and hybrid renewable solutions at a tricky time when the eyes of the world are on petroleum-based fuel supplies. The company's Black Swan hub currently retains access to two existing grid connections.
Other major items in the company's checklist also include a $1.3 million bore field refurbishment and upgrade effort to supply construction water, and identifying suitable bore locations to meet the site's eventual operational needs for potable and process water. The company has engaged Flow Water Services (FWS) to complete its borefield upgrades.
Other items include site access, traffic management provisions and upgrading the site access route. Communication system upgrades are also being completed or are still in progress, with ESN Group reviewing site requirements as the company pushes ahead with the design of an integrated network to serve the various sites.
The stage-one construction accommodation camp became available for use last week, while the more extensive permanent 60-room camp, scalable to 120 rooms, is expected to be operational from January next year.
Maritana Minerals managing director Grant Haywood said: “The MDCP approval for the BSPH, followed by DWER’s Works Approval, are key milestones that keep our approvals pathway on track. With these approvals now in place, our Clearing Permit application is progressing through the DMPE assessment against a 30-day target. At the same time, we are methodically reducing the risks across the non-process infrastructure needed to support construction and operations at the BSPH.”
The positive permitting news comes hot on the heels of the company’s decision last month to commit $25 million to an early works program at the site. That program, already well-advanced, has involved progressing detailed engineering and ordering long-lead items to de-risk the project’s cost and schedule.
The Black Swan project centres on converting a former nickel processing plant into a modern, 2.5 million-tonne-per-year gold operation. Previous studies by the company suggested the facility could churn out an average of 102,000 ounces of gold per annum over an initial five-year mine life.
To feed the proposed plant, Maritana is in the midst of a massive 60,000-metre resource conversion drilling campaign across its Boorara, Coote, Gordons Dam and Crake deposits. The program is aimed at upgrading a significant slice of its 1.88-million-ounce gold resource from the inferred to the indicated category, which will provide the geological confidence needed for detailed mine planning.
Crucially, the aspiring gold producer appears well-funded to execute its strategy, reporting a formidable cash position of $229.5 million at the end of the June quarter.
With a swag of key government approvals now in its back pocket, early works underway and a war chest of cash in the bank, Maritana is looking less like a developer with a plan and more like a producer-in-waiting. The final investment decision is the next major hurdle and securing these permits makes that call a whole lot easier to make.
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By Doug Bright
