Gold miner St Barbara has approved a major extension of its Gwalia operations, which will extend the historic mine to a depth of 2,000 metres below surface over the next seven years.
The company plans to spend $100 million over the next two and a half to three years, and says this project will provide the foundation for potential further extensions.
The overall budget includes $6 million of spending approved by St Barbara’s board in January for early works expenditure.
The $100 million project includes construction of four ventilation shafts and related power and cooling infrastructure.
This will allow the company to extend mining from a current depth of about 1,500 metres.
The second major aspect of the project is the production of paste aggregate fill (PAF) using a combination of waste crushed underground with paste from the surface.
The company said the disposal of waste rock underground would boost the mine’s efficiency while the PAF would allow faster stope filling.
Managing director Bob Vassie said the board approval was the start of an exciting new phase in the company’s, and the mine’s, history.
“Gwalia started in 1896 and it just keeps going,” Mr Vassie said.
“The project will ensure Gwalia can continue delivering strong, high margin gold production until at least 2024 with the foundation laid for further extensions to the mine life beyond this, as well as potential for increased production.”
The company said the feasibility study for the current project defined additional infrastructure that could extend ventilation from 2,000 metres to allow mining to 2,200 metres at a cost of between $30 million and $35 million.
St Barbara produced 267,000 ounces of gold in FY16 at its Gwalia operations, located near Leonora in the northern Goldfields.
The Melbourne-based company also produced 110,000 oz at its Simberi mine in PNG.
