Ballarat Gold Project Update - Commissioning Commences
Operations Update
01-08-2011
Ballarat Gold Project Update
Commissioning Commences
Castlemaine Goldfields Limited (ASX:CGT) is currently re-developing the Ballarat Gold
Mine, with activities focused on underground mine development and gold processing
plant re-commissioning such that first gold bullion production can be delivered on
schedule in September this year.
Approximately 3,500 tonnes of low grade gold ore has been mined to date and bought
to surface to provide material for the processing plant re-start.
The gold processing plant, kept idle and on care and maintenance since early last year,
underwent a minor refurbishment over the past two months. Commissioning
successfully commenced last week, ahead of schedule.
It is now planned to run the plant on dayshift only throughout August to bed the process
in and afford the newly recruited plant operators time to learn the circuit, under the
guidance of more experienced employees.
As the underground mine ore production ramps up, the processing plant will then revert
to a 24 hour operation, 3 to 4 days a week, in September.
First gold bullion production will occur later that month.
Managing Director Mr. Matthew Gill commented “This is a very exciting time as we
commence crushing the gold bearing quartz material mined from underground. We
purchased the Ballarat Gold Project on care and maintenance last year and to now see
the front end of the plant running is a great credit to that care and maintenance team
and the current group of employees that have worked on, and are now operating, this
plant.
It is anticipated that first gold bullion production will occur in September. This is great
timing given the current high gold prices and sentiment for this precious metal.”
Matthew Gill
Managing Director and Chief Executive Officer
ABOUT CASTLEMAINE GOLDFIELDS LIMITED
Castlemaine Goldfields Limited (CGT) holds significant exploration titles encompassing five substantial goldfields in Central Victoria. This land holding gives CGT access to two of the three largest historical gold producing areas in Victoria (totaling some 17 million ounces of gold). CGT has 100% of the Ballarat, Castlemaine, Tarnagulla, Berringa and Sebastian Goldfields, with approved Mining and Exploration Licences over the key areas.
The primary focus is to return the Ballarat Gold project to production at a targeted annualised rate of approximately 50,000 ounces per year by the 1st Quarter 2012. Resumption of mine development commenced in March 2011 with first ore planned to be accessed mid-year followed by gold production in the 3rd Quarter 2011. Results of the successful mining study were announced on 14th February 2011.
It is anticipated that with further exploration success a similar rate of gold production could also be sourced from the Castlemaine goldfield. Substantial value will be added to the Ballarat project from resource discoveries and development of CGT’s other existing Central Victorian projects.
The inaugural JORC Code Inferred Resource estimate for the Chewton Deposit, and remnants at the Wattle Gully Mine at Castlemaine, totaling 686,000 ounces of gold were announced in 2008 (ASX:CGT release 2nd June 2008).
