IT’s a case of so far so good for Perth-based gold developer KalNorth, with the official opening of its first gold mine. Gold production is now underway at the Lindsay project, 65km northeast of Kalgoorlie; the first of four projects in the KalNorth Gold Field to enter production.
Speaking at the opening ceremony, chairman Laurence Freedman said the mine’s production launch represented an important milestone for the company and shareholders.
“With production now underway at the Lindsay’s field, we have officially transitioned from gold explorer to gold producer,” he said.
Mr Freeman also believed that the development, which was completed on time and on budget, added credibility to the company as a profitable gold producer.
“We have worked hard to execute this transition within a two-year timeframe and within a cautious budget.
“To successfully do this in such a short space of time is a significant feat for us to achieve.”
Production started at the Parrot Feathers Deposit in the Lindsay field, which is expected to deliver 440,000t of ore and 40,000 ounces of gold during the next 18 months.
The ore will be transported to the nearby Carosue Dam mill for processing. Mr Freedman said the proceeds generated from the first mine would help fund the other three projects. “The cash flow from production at Lindsay’s will help to expand exploration activity and, ultimately, to develop open pit mining operations at our other three fields – Kurnalpi, Kalpini and Mt Jewell,” he said.
“Plans for this next stage are well advanced.” The company aimed to add at least 500,000 ounces of gold to its reserves in 2013.
The tenements, which cover more than 1235 square kilometres of land, are fully owned and operated by KalNorth.