Millennium commences full production at Nullagine
THE BOURSE WHISPERER: Millennium Minerals (ASX: MOY) has commenced full production at the company’s Nullagine gold mine in the East Pilbara District of Western Australia.
Nullagine deposit location plan. Source: Company announcement
The company said operations at the mine during October had demonstrated the plant was operating to its design specification.
Millennium’s production objectives for the two remaining months of the year are based on the design criteria for the process plant, which the company indicated would see gold production of approximately 6000 ounces monthly, depending on the head grade milled, at a design throughput of 125,000 tonnes per month.
Ore supply will be sourced entirely from the Golden Eagle pit during the period.
“We are delighted to be in a position to put the operation on a full production footing six weeks after the start of mill commissioning which reflects the excellent performance of the facility during the commissioning phase and the capabilities of our operations team and partners at the site,” Millennium Minerals chief executive officer Brian Rear said in the company’s announcement to the Australian Securities Exchange.
“The performance of the plant in October and the resolution of any causes for delays beyond normal production experience underline the decision.”
Millennium expects the capabilities of the plant will be fully tested between now and the end of December, which it said should establish a base case for expansion studies.
The company is targeting a stage one expansion from design throughput of 1.5 million tonnes per annum to at least 1.7mtpa treated for FY2013.
The studies will look at requirements to further expand production above that level.
The company is planning a substantial resource and reserve drilling program to be conducted during 2013 centred on Golden Eagle as well as the central pits such as Shearers, and the far eastern deposits such as Golden Gate.
Mapping carried out during 2012 in and around these locations has identified numerous new gold exploration targets Millennium intends to follow-up.