Resolute Mining announced that stage 1 of the Ravenswood expansion project has been completed at the Ravenswood gold mine in Australia.
Resolute Mining (ASX:RSG,LSE:RSG) announced that stage 1 of the Ravenswood expansion project has been completed at the Ravenswood gold mine in Queensland, Australia.
Highlights are as follows:
• The first stage of the Ravenswood expansion project has been completed with recommissioning of third mill.
• Site processing capacity at Ravenswood has been increased to 5 million tonnes per annum.
• Processing of beneficiated low-grade stockpiles is now generating positive operating cash flows.
• Stage 1 expansion targets production of 80,000 ounces of gold at an all-in sustaining cost of AU$1,600 per ounce in 2020.
• The strategic and technical review of the Ravenswood expansion project continues to identify efficiency and scale improvements with potential to deliver 200,000 ounces annually for 15 years.
• Stage 2 of the Ravenswood expansion project expected to commence during 2020 with timeline to complete implementation 24 months post investment decision.
John Welborn, managing director & CEO, commented:
The strategic review of the Ravenswood Expansion Project continues to demonstrate we are creating value for Resolute. Increasing the plant capacity at Ravenswood to 5 million tonnes per annum and using this capacity to beneficiate and process available low-grade stockpiles, delivers an immediately cashflow positive, profitable mining operation at Ravenswood. More importantly, it is a step towards the much larger production base that we believe is possible at Ravenswood. During 2020, the strategic review will now evaluate the future capital demands of the full REP, contemplate the timing of an investment decision on stage 2, and how best to maximise value for Resolute shareholders from this potential.