Resolute at Ravenswood until 2029

Gold producer Resolute Mining looks likely to recommence open-pit mining at its Ravenswood underground operation after a feasibility study released today suggested it would extend mine life to 2029.

Open-cut mining would recommence at existing pits at Nolans East, Sarsfield and Buck Reef West.

Resolute managing director John Welborn said the company had previously planned to close operations at Ravenswood when reserves at an existing pit at Mt Wright ran out.

“We now look forward with confidence to a 13-year mine life at Ravenswood as we return to open-pit mining,” he said.

“The expansion projects will transform our Ravenswood operations and have been made possible by the imaginative work of Resolute’s project delivery and operating teams.

“I am especially proud that the expansion project will secure the future employment of 280 permanent employees and contractors and lead to a significant number of new jobs in the Ravenswood region.

“Ravenswood is a major gold field, having produced over 3 million ounces of gold.

“Ravenswood now has ore reserves of 1.8 million ounces and a development plan to ensure a long life, low-cost operation that will continue to sustain the town with local employment and a range of other community benefits.”

It has been an encouraging year for gold miners, with a lower Australian dollar and overseas political uncertainty contributing to a record high price in local currency terms.

Resolute posted a net profit after tax of $213 million for the 2016 financial year, well up from a loss of $569 million in 2015.

Gold production was 315,000oz.

Speaking to Business News recently, Mr Welborn touted innovations such as driverless trucks and autonomous bogging as a major part of a long-term strategy to reduce costs.

Shares in Resolute were down 0.5 per cent to $2.13 at the close of trading today.