The Cowal gold mine in NSW has delivered its best quarterly performance yet since Evolution Mining acquired the operation in 2015.
Evolution achieved a record quarterly throughput at Cowal, with 2.4 million tonnes of ore processed in the December quarter, a 16 per cent increase from the quarter before.
This resulted in record gold production for the month of December, where 28,285 ounces (oz) of gold was poured. The operation was also benefited by improved grades, with gold mined at 0.94 grams per tonne (g/t) across the three months (up from 0.8g/t in the September quarter).
The all-in sustaining cost (AISC) at Cowal was also 23 per cent lower than the quarter before at $1042/oz (September quarter: $1354/oz).
These results came despite Cowal experiencing 208mm of rainfall during the December quarter.
Evolution’s operating mine cash flow increased by 31 per cent to $270 million, led by the Ernest Henry mine which generated $142 million in mine cash flow before major capital. Cowal generated $93 million in mine cash flow before major capital.
“We generated very strong operating cash flow this quarter which reinforces our position as one of the lowest cost, highest margin global gold producers,” Evolution managing director and chief executive officer Lawrie Conway said.
“We remain on track to deliver group FY23 production and cost guidance with planned quarterly performance weighted to the second half of the year.
“With available liquidity of $838 million, our balance sheet is well positioned to support our growth in low-cost production.”
Evolution’s group FY23 guidance is 720,000oz of gold produced at an AISC of $1240/oz.
The gold miner has also announced new drill results from the Ernest Henry mine, where it said it had intersected significant mineralisation below and within the pre-feasibility study (PFS) mine life extension area.
This included 118.1m at 0.79g/t gold and 1.15 per cent copper, and 20.4m at 1.69g/t gold and 2.16 per cent copper at two separate drill holes.
“Results confirm that strong mineralisation exists below the PFS area, indicating significant potential for mining beyond the current study,” Evolution said.
“As a result, a decision has been made to extend the PFS to incorporate the larger footprint in determining the optimal location of infrastructure with this work expected to be completed in the June quarter.”