Diggers and Dealers: Evolution mulls Mungari potential for extra life – The West Australian

Australias second biggest gold miner Evolution Mining is mulling the underground potential of a second deposit at its Mungari operations near Kalgoorlie-Boulder as it aims to match its mine life with its portfolios star Eastern States assets.

Evolution executive chairman Jake Klein used his presentation to trumpet the companys $14 million exploration commitment to Mungari this financial year, the most of any mine in its portfolio.

It has six years to run, compared with an 8.3 year average life of mine across the groups seven-mine portfolio, while 27 miners were recently let go at its Frogs Leg underground mine, which has a life of 31/2 years.

Deeper drilling is understood to have revealed underground potential beneath the White Foil open pit, although Mr Klein said it was still early days.

Thats an area of real interest at the moment. I think its early days, what we know is weve got a 31/2 year mine life at Frogs Leg, were hoping to extend that, he said.

Weve started drilling some really interesting results at White Foil but its still early days, theres still a lot of life left in the pit.

But I think the message Id like to convey is weve owned Mungari for just over two years now, its a very important asset to Evolution and we believe strongly in the prospectivity of the region.

Mr Klein said he hoped to push the life of mine at Mungari, secured of Naguib Sawiris LaMancha Resources in 2015, out past the group average.

At Mungari we would love to get to an eight to 10 year mine life, he said.

Industry speculation has linked the miners weakest performing asset, the Edna May Gold Mine near Westonia, with a sale.

But Mr Klein said its poor performance in the March Quarter, when costs outstripped revenue, was an aberration.

Evolution closed down 3, or 1.36 per cent, at $2.18 yesterday.

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Diggers and Dealers: Evolution mulls Mungari potential for extra life - The West Australian