Further to this, the group anticipates that its Nullagine Gold Project in Western Australia will be producing at a run rate of 100,000 ounces per annum in 2019.
Mining resumes at Golden Eagle
The production update incorporates a resumption of mining at the flagship Golden Eagle Mining Centre, the largest and most important gold deposit at Nullagine.
This is consistent with the company’s strategic focus on transitioning to mining larger and more sustainable ore sources.
Chief executive officer Peter Cash said: “Returning to mining operations at Golden Eagle is a significant milestone for the company.
“This is our flagship, 320,000-ounce deposit at Nullagine, and provides us with an opportunity to establish a large, consistent and reliable ore source that will help drive our growth over the next few years.”
Lower costs support robust margins
Management expects that this will provide it with the potential to reduce its cost base and unlock operational efficiencies.
Production costs of about US$1,300 per ounce are expected in 2018.
This leaves a reasonable margin given that the Australian dollar spot price is $1,700 per ounce.