Tropicana underground expansion receives approval
March 23rd, 2019
The Tropicana joint venture has cemented the Western Australian gold mine’s future by approving the Boston Shaker underground development.
JV partners AngloGold Ashanti and Independence Group (IGO) will launch the $105.7 million project in the June quarter. They have scheduled first gold for the September quarter next year.
The underground development is expected to contribute an annual average of 100,000 ounces to Tropicana’s production profile from the 2021 financial year.
It will allow the JV to maintain Tropicana’s production at between 450,000-500,000 ounces per annum over the next five years, with the average annual output over this period expected to be 480,000 ounces.
A feasibility study on the Boston Shaker development has confirmed that underground mining is technically and financially viable. The cost estimate is, however, higher than the $95 million forecast in the December 2018 project pre-feasibility study.
Macmahon Holdings has been awarded a five-year, $170 million mining services contract for the underground mine. The work adds to Macmahon’s existing agreement at Tropicana, which is already the site of the company’s largest mining contract in Australia. Read more…