Tag Archives: Lawrie Conway

GR Engineering wins EPC work on Evolution’s Mungari Future Growth project

Comminution of minerals, Mine operation news, Mineral processing, Mineral project development, Mining services, Precious metals, , , , ,

Evolution Mining has awarded a contract to GR Engineering Services Limited to complete the plant expansion works at its Mungari gold mine in Western Australia.

These works, part of an engineering, procurement and construction contract, are expected to total A$155 million ($100 million) and are within the project budget and schedule as part of the company’s previously announced commitment to invest A$250 million to increase the site’s processing capacity from 2 Mt/y to 4.2 Mt/y, Evolution says. It also includes required changes to process plant buildings and associated infrastructure, according to GR Engineering.

Initial engineering design and procurement works have commenced with site works commencing in mid-January 2024. The project has an estimated 30-month construction period including long-lead items and approvals, with commissioning expected by the end of the March 2026 quarter.

Targeting gold production of 200,000 oz/y for the life of the mine, this project is expected to reduce Mungari’s All-In Sustaining Cost by 18% to $1,750/oz and extend the mine life to 2038, Evolution says.

Evolution Mining’s Managing Director and Chief Executive Officer, Lawrie Conway, said: “The award of this contract is a major milestone for the Mungari Future Growth project. It secures the critical processing plant infrastructure within our budgeted costs, locking in over 60% of the project costs, and secures a delivery time within the approved project schedule.

“The feasibility study established a sound investment case with an internal rate of return for the project of between 19% and 28%, at a conservative A$2,400/oz and spot price of A$2,965/oz, respectively.”

Tony Patrizi, Managing Director of GR Engineering, said: “We are extremely pleased that Evolution Mining, one the world’s leading tier one gold producers, has selected GR Engineering to deliver the Future Growth project at Mungari. GR Engineering has a long track record of successful project delivery in the mineral processing sector. We see this contract award as a strong endorsement of GR Engineering’s proven process design record and EPC delivery capability.”

Evolution Mining hits production milestone ahead of schedule at Cowal

Mine operation news, Mineral project development, Mining services, Precious metals, , , , , , ,

Evolution Mining says it has achieved a major milestone in its planned growth of getting the Cowal gold mine in New South Wales, Australia, to circa-320,000 oz in its 2024 financial year, with underground production commencing ahead of schedule.

The first underground stope has commenced being mined and processed this month, with continued ramp up of the underground expected over the remainder of this financial year (to end-June). This is three months ahead of the previously announced original schedule of the June 2023 quarter.

In 2021, the Evolution board and regulators approved the development of the Cowal Underground Mine, which is set to provide a higher-grade ore source that will be blended with the current open-pit operation and stockpile ore.

Perenti’s Barminco underground mining business has been conducting all underground development and production works for the project as part of a A$520 million, four-year agreement signed last year.

The project remains within the original A$380 million ($254 million) budget, according to Evolution, with the completion of the accommodation village and commissioning of the paste plant remaining on track for the June 2023 quarter.

Evolution’s Chief Executive Officer and Managing Director, Lawrie Conway, said: “We have achieved a major milestone at Cowal with the early commencement of production from the new underground mine. It is a credit to the project team to be able to commence production ahead of schedule and on budget in the current inflationary market conditions for project development and construction.

“We are now on the pathway to increase Cowal’s production from the current FY23 guidance of ~275,000 oz to FY24 outlook of circa-320,000 low cost ounces.”