The Board of Intermin Resources Limited has given the nod for the development of the Teal Stage 1 open cut gold mine, located 12km north west of Kalgoorlie-Boulder in the heart of the Goldfields of Western Australia.
The Teal project development comes after completion of a positive Feasibility Study earlier this year, which examined the possibility of developing a Stage 1 oxide and transitional material.
According to the company, approximately 171,500t grading 3.2g/t gold will be mined over the nine-month mine life, with production expected to reach 15 567 ounces at an average 88% gold recovery.
“Bringing Stage 1 into production is a major milestone for the Company and comes at a time of reduced operating costs and a strong Australian dollar gold price to deliver significant cash flow to the business this financial year,” said Intermin’s Managing Director Jon Price.
“We are now fully focused on safe, efficient mining operation at Teal, generating a continuous pipeline of projects beyond Teal and accelerating exploration on the major shear zones to grow our resource position and continue our search for the next big discovery.”
Intermin said RM Contracting will co-fund the development of the mine to share in 25% of the free cash flow. The company has also entered into a haulage and ore treatment agreement with Paddington Gold, which will haul ore mined from Teal Stage 1 via their private haul road to its 4Mtpa Paddington processing plant.
“Mobilisation of mining fleet and associated equipment has commenced with first gold production expected in the December Quarter after pre-stripping of the waste overburden over an 8-10 week period,” reads the company’s statement.