The Board of Laneway Resources Limited ('Laneway' or 'the Company') (ASX:LNY) is pleased to advise that a second gold pour took place late yesterday at the Georgetown Gold Processing Plant from the processing of high-grade ore mined at the Sherwood deposit within Laneway's 100% owned Agate Creek Gold Mine in North Queensland.
A second gold pour occurred yesterday evening of a 10.76 kg gold dore bar (pictured above) at the recently refurbished Georgetown Gold Processing Plant (GGPP) from high-grade ore sourced from Laneway's 100% owned Agate Creek Gold Mine. The bar has been sent to the Perth Mint for refining.
The bullion poured so far has been recovered only from the gravity circuit of the GGPP at this stage - and has delivered 14.66kg of gold dore to date as processing throughput rates and production continue to ramp up during the plant recommissioning phase.
Carbon loaded with gold bullion recovered from the carbon-in-leach (CIL) circuit of the GGPP since processing commenced has also now been shipped and transported for contract off site stripping whilst final modifications are completed to the onsite elution circuit. Bullion from this carbon stripping is expected to be poured and delivered to the Perth Mint early next week. It is expected that a similar amount of gold will be recovered from the CIL circuit as is being recovered from the gravity circuit.
Since ore commenced being fed into the plant on the 30th August, a total of 2,478 tonnes of Agate Creek ore has been processed with throughput and production rates continuing to increase and night shift operations scheduled to commence shortly.
Approximately 27,500 tonnes of ore grading 8 g/t gold has been mined from the current pit at Sherwood since mining recommenced at the end of June, with the final drill and blast program for this pit due to commence next week.
Laneway entered into an agreement earlier this year to acquire the Georgetown Project and is now in control of all of its own mining and processing operationsfrom which it anticipates generating material positive cashflow.
The Company is successfully continuing its gold production ramp up with a further gold pour late yesterday having brought the Agate Creek project into production quickly following the entering into of the agreement to acquire the Georgetown Project earlier this year. With the refurbishment of the GGPP completed in line with expected timeframes, Laneway will now be pouring gold dore on a weekly basis. The gold pour yesterday comprised a dore bar weighing approximately 10.76 kg of gold and silver bullion. This bullion bar will now be despatched to the Perth Mint for refining. The first dore bullion bar shipped to the Perth Mint last week was refined to 82.7 ounces of gold and 31.7 ounces of silver. This bullion currently being produced on-site is purely the material recovered from the gravity circuit of the GGPP only from the ore processed to date as the on-site carbon stripping circuit is awaiting the installation of some further parts to allow stripping on site of the carbon loaded with gold from the CIP circuit. Contract stripping of the loaded carbon will be undertaken through a third party for the next 6-8 weeks. The first shipment of loaded carbon has been dispatched and is expected to arrive later today for stripping with bullion from this carbon stripping expected to be poured and delivered to the Perth Mint early next week. It is expected that a similar amount of gold will be recovered from the CIL circuit as is being recovered from the gravity circuit.
First ore was fed into the milling circuit on 30th August in line with expectations. Since commencement of ore processing, 2,478 tonnes of ore has been crushed, milled and is being processed. Head grade assays are in line with expectations. Processing rates are currently approximately 18 tonnes per hour day shift only - a second shift is scheduled to commence later this month allowing 24 hour processing with throughput rates expected to average around 20- 22tph. Processing rates will be dependent on feed grades and ongoing metallurgical performance including recovery. Mining operations are progressing well with a total of approximately 27,500 tonnes at 8 g/t gold already mined from the current pit at Sherwood with the final drill and blast program for this pit about to commence. Further pits to be mined after the current Sherwood pit are in the final stages of planning and approvals. The ore is being transported to and then processed through the Georgetown Gold Processing Plant. Utilising an existing processing plant has significantly reduced the capital expenditure and time to first gold production for Laneway and establishes a robust platform for enduring cash flow and subsequent growth.
Laneway anticipates material positive cash flow this year from the high grade gold mining activities at Agate Creek aided by continuing high prices for AUD denominated gold. The expected cash flows will establish a sound financial platform for the Company to progress its project portfolio.
Phone: (07) 3108 3500
(C) 2022 Electronic News Publishing, source ENP Newswire