THE BOURSE WHISPERER: Goldfields heavy-hitter Silver Lake Resources is undertaking a second stage upgrade to take its Lakewood Gold Processing Facility (LGPF) to one million tonnes per annum capacity.
Stage one of the upgrade of The Lakewood facility, located five kilometres south east of Kalgoorlie, was completed on time and on budget.
Mount Monger Operations location plan. Source: Company announcement
However, Silver Lake said it is currently constrained by operating at a maximum hard rock capacity of 33,000 tonnes per month for an annualised milled rate of 400,000tpa.
Stage one of the upgrade took Lakewood to 700,000tpa of hard rock and was completed by carrying out the following scope of works:
– Relocation, refurbishment and recommissioning of a 1.6 megawatt Morgard-Shammer ball mill already owned by the company;
– Duplication of existing gravity circuit;
– Construction of a 1,500 cubic metre leach tank and modifications to current CIL circuit;
– Upgrade to materials handling system; and
– Upgrade to power supply.
The company has commenced a planned nine day shutdown to tie in the upgrade circuit, which it said it expects will be commissioned and running at 700,000tpa in January 2012.
Ore stocks have been built to around 206,000 tonnes containing around 21,700 ounces of gold in readiness for feeding the upgraded circuit.
Stage 2 of the upgrade from 700,000tpa of hard rock to one million tonnes per annum of blended rock has now commenced and involves the following scope of works:
– Upgrade of current crushing circuit to one million tonnes per annum;
– Expansion of the tailings storage facilities; and
– Tie in of the current 640 kilowatt mill as a regrind mill.
“Budget estimate for the Stage 2 upgrade is four million dollar to five million dollars and is expected to be completed in the September 2012 quarter,” Silver Lake Resources said in it ASX announcement.
“This upgrade has been designed so that the current 650 kilowatt mill and the newly installed 1.6 megawatt mill can be run independently.
“This will eliminate lost milling time due to planned or unplanned maintenance requirements.”