Cowal's Project 300 takes off

Cowal started openpit production in 2006 and has produced more than 300,000oz in a year once, in the 2013 financial year, though it was only a couple of thousand ounces short in the 2010 and 2013 calendar years.Evolution acquired Cowal from Barrick Gold in mid-2015 for US$550 million at a time when the mine's best years were widely considered to be behind it.Cowal has generated net mine cashflow of A$431 million over three years for Evolution and steadily produces 240,000-280,000oz per annum.Cowal produced 258,000oz of gold at all-in sustaining costs of $877 an ounce in the 2018 financial year, with guidance for FY19 set at 240,000-250,000oz at AISC of $975-1075/oz."It's not unusual for stockpiles to overperform so there is upside in this guidance," Cowal general manager Craig Fawcett said ahead of a site visit to the mine.Sustaining capital for the year is set at $55-60 million, while major capital will be $90-100 million.That's because there's a lot currently happening at Cowal.The approval by the New South Wales government of Modification 13 early last year extended the life of the mine out to 2032 by allowing the Stage H pit cutback to proceed.The $230 million Stage H cutback, currently slightly under budget, is expected to be completed by FY21 and allows access to an additional 1.2 million ounces of gold.The $35-40 million float tails leach project will increase recoveries from 82% to 86-88% from next year and is also on time and within budget.Cowal currently operates at around 8 million tonnes per annum, but Evolution is aiming to complete a feasibility study into an expansion to 9.5Mtpa to allow for the processing of stockpiles and other resources.The expansion will target a drop in unit costs of 10-15%. The Cowal mill Evolution is also considering a move underground, as well as an innovative in-wall ramp that would give it access to an additional 400,000oz. Both projects are at the concept stage."This sort of study is unprecedented because most companies don't have this sort of optionality," Fawcett said.Evolution has submitted an application for Modification 14 to allow for the plant expansion, as well as the integrated waste landform project, a tailings solution to support the plant expansion to up to 9.8Mtpa at reduced costs.Evolution executive chairman Jake Klein said 96% of the submissions from stakeholders were in favour of the proposal.The company plans revolve around receiving approval for the modification by March next year, but is hoping that nod could come sooner."That confidence is around conversations we've had with the government - they've been constructive," Klein said.DiscoveryWhen Evolution acquired Cowal, it had operated for nine years and was due for closure in 2024.Cowal has resources of 6.08 million ounces and reserves of 3Moz, the latter of which has nearly doubled during Evolution's ownership.The resource mainly sits within the E42 pit, which has a total known endowment of more than 6Moz."You would have assumed the exploration potential in that field would have largely been closed off," Klein said."What we've found is that the field is actually wide open from an exploration perspective."The things that [VP discovery] Glen [Masterman] and the team have been talking about are very exciting from a prospectivity and discovery potential perspective, and the vision of starting to change it into a long-term horizon - 20 years was mentioned."There are a number of resources within nearby satellite pits and the main E42 pit itself looks to continue."It's obvious mineralisation extends well beyond the Stage H pit shell," Masterman said.The company also has the GRE46 underground resource of 604,000oz at 3.2gpt gold.The board has already approved the GRE46 exploration decline and subject to approvals, work will begin in the first half of next year.The GRE46 exploration decline will cost $20-22 million and take around 14-18 months to build."We're trying to understand if we've got a tiger by the tail," Masterman said. Visible gold in core from recent drilling at Cowal Last week, Evolution announced the discovery of the high-grade Dalwhinnie lode in the footwall of the GRE46 main mineralised zone.Results included 3m at 69.9gpt gold from 883m; 6m at 67.3gpt gold from 687m; 1m at 38gpt gold from 774m; 2m at 16.2gpt gold from 661m; and 1m at 17.4gpt gold from 868m.Dalwhinnie remains open in all directions.A previously reported intersection of 7.5m at 10gpt occurs in the same geological position at Dalwhinnie, but is more than 500m to the south.Masterman said it couldn't be ruled out that mineralisation continued along the full 500m strike length."There's not much drilling between the two discoveries," he said.Once the decline is complete, Evolution will spend $6-7 million on 36,000m of underground drilling to confirm and expand the GRE46 resource."The potential of 750,000 tonnes to 1 million tonnes of higher grade material to make a significant impact on Cowal is real," Klein said.Evolution will spend $15-20 million on exploration at Cowal this year, as well as $3-7 million on resource definition.*Kristie Batten is editor of www.miningnews.net. The reporter travelled to Cowal as a guest of Evolution Mining.

ABOUT

SOLUTIONS

LEGAL

SOCIAL

PRECIOUS METALS

Cowal's Project 300 takes off

Already have an account? Sign in here

MORE ON THIS TOPIC

FROM OUR PARTNERS

RESOURCE STOCKS

Forsys Metals' pipeline of catalysts to excite the market

RESOURCE STOCKS

The largest mineable measured uranium deposit in the USA

MOST POPULAR

ESG

Braskem faces lawsuit over Maceió mines as city declares emergency

BASE METALS

Vale Base Metals boss stands down

REGULATION

Heat grows for Sandfire over Aboriginal artefacts damage

BASE METALS

Codelco's chief commercial officer resigns

RESEARCH

Premium subscribers only

View more

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

Mining Journal Intelligence Mining Equities Report 2023

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Mining Journal Intelligence Project Pipeline Handbook 2023

THE ASPERMONT BRAND PORTFOLIO

Login

Not a Subscriber?

Subscribe Now