Gold play Primary Gold is on track to begin mining at its wholly-owned Coolgardie project in the current quarter after receiving final tick of approval.
The Perth-based company (ASX:PGO) surged as much as 26 per cent higher today, hitting an intraday high of 4.9c after receiving Mining Proposal and Mine Closure Plan approval from the Department of Mines, Industry Regulation and Safety.
The Company now has all required statutory approvals – covering environment, water, waste management and safety – to begin mining at Coolgardie.
Coolgardie project – located in the goldfields of Western Australia – is expected to be a low capital cost start-up mining operation. Mining will initially begin in three pits at the project – Tycho, MacPhersons and A-Cap – with ore to be treated via a toll treatment arrangement at a nearby processing facility.
Primary Gold Managing Director Garry Mills said the start of mining at Coolgardie represented a key milestone in the Company’s history.
“Having received full approvals to commence mining at our Coolgardie operations, we can now move on to next steps of setting up site for mining,” he said.
“A firm schedule can now be put in place for mining of first ore and hence timing of processing ore parcels to be scheduled for toll treating.
“With mining commencing and exploration targeted for the Coolgardie leases, 2018 marks the beginning of an important new phase of growth and activity for Primary Gold.”
With all necessary approvals in place the Company can now finalise the key contracts.
Hampton Mining and Civil is the “preferred” contractor for development of Coolgardie Project and will be responsible for all drill and blast, excavation and haulage operations.
Mining and Drilling Services Pty Ltd will undertake Reverse Circulation (RC) grade control drilling.
A Reverse Circulation (RC) grade control drill rig will be mobilised to site with the grade control program to initially target the A-Cap and Tycho pits.
Site preparation and access to the pits has now been completed for the program which will begin as soon as the drill rig arrives on site.
The Company is also now able to finalise the mine and mill schedule and the toll treating schedule allowing for processing options to be determined and finalised.
Shares in Primary were last trading 0.8c higher at 4.7c at 12:30pm AEDT.