Kidman Resources to commence mining at Burbanks gold project in WA

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Image credit: Kidman Resources website

Diversified resource company Kidman Resources has been granted approval for open pit production at its Burbanks gold project near Coolgardie in Western Australia.

Image credit: Kidman Resources website
Image credit: Kidman Resources website

The company said that mining will begin immediately and that it expects to produce 4552oz at 4.32 gpt from the starter open pit during the December quarter.

According to the ASX Announcement, the ore from the open pit will be processed over the coming December quarter in conjunction with the ore from the underground mine.

The company’s Managing Director Martin Donohue said the commencement of production at Burbanks is a key milestone in Kidman’s strategy to become an Australian gold producer.

Adertisement

“This is an important event both because it means Kidman is generating cash flow and it shows that we are delivering on the undertakings we have given to the market since acquiring the project in April this year,” he said.

“While the open pit program is relatively small at 4552oz, it supplements the current underground production and the additional free cash flow it will generate next quarter is substantial for Kidman as it transitions into full production. This cash flow from the open pit will underpin further underground development and the extensive diamond drilling program which will in turn generate the gold inventory needed to build a mine plan with production and cost forecasts for the Burbanks underground mine. Kidman will then have the foundations in place to be a significant goldminer with strong cash flow and exploration upside.”

Aside from the Burbanks Gold Mine in WA, Kidman Resources also owns an advanced exploration project in the Northern Territory, the Crowl Creek Project in New South Wales and the Brown’s Reef project in the southern part of the Cobar Basin.