East Menzies Gold Project operations restart
The recommencement of gold mining and production operations at Resources and Energy Group’s East Menzies Gold Project is paving the way for the first gold pour in the coming weeks.
Mining will initially focus on the Maranoa deposit, with targeted processing of 5,000t of ore via the soon-to-be-built vat leach facility. With a diluted grade of approximately 4.6g/t gold, processing the ore through the vat leach method will yield essential insights into the scalability of future operations at East Menzies. This marks the start of a sustained production phase and will provide critical data for optimising future resources.
Resources and Energy Group’s Managing Director, J. Daniel Moore, said the works are pivotal in the development of the East Menzies Gold Project.
“The reinitiation of mining and production at Maranoa signals the beginning of sustained gold output and showcases the significant potential of the broader consolidated tenement package.”
Mr Moore said the vat leach program is timely with the current record high gold price. This process provides a low-cost, fast-track method for gold extraction and sets the company up for long-term production success.
“By building on our recent Granny Venn campaign, we can leverage operational efficiencies and lessons learned to drive down costs and increase margins,” Mr Moore said.
“Furthermore, the cash flow generated from this phase will support the ongoing exploration of other high-grade deposits across our East Menzies tenements, ensuring sustainable and scalable, targeted operations to grow shareholder value.”
The recommencement of mining operations at East Menzies follows the success of the company’s previous campaign at the Granny Venn deposit, which produced 8,700oz of gold from 130,000t of ore and generated $23 million in revenue despite lower gold prices at that time. The current high gold price environment and adoption of the low-cost vat leach process place Resources and Energy Group in a solid position to capitalise on rising market conditions and optimise production costs.
Following this initial phase, Resources and Energy Group plans to expand mining operations to other key targets within the East Menzies tenement area, including the Goodenough and Granny Venn deposits.
Source: https://miningmagazine.com.au