Continuous production requires continuous re-invention . . . not to mention, just occasionally, stumbling across a massive new orebody.
That’s the clear lesson learned at the long-life Wiluna gold project, according to Tim Sugden, managing director of
Agincourt purchased Wiluna in December 2003, more than 100 years after the 4.4-million-oz. mine started producing, and then, earlier this year, accidentally discovered the bonanza-scale Calais deposit.
“Wiluna is a large mine with large scattered orebodies, including two major orebodies over three and a half kilometres,” Sugden says. “And both orebodies have a million ounces.
“The east fault is the largest concentrate, with 1.2 million ounces in resources, but as yet it hasn’t really been drilled. Now, however, a two-kilometre lode target has been opened up.
“This is one of those situations in which, for many years, assumption has blinded geologists to what is possible. During drilling, we accidentally discovered a bonanza section of eighteen metres grading 26.9 grams per tonne, and this discovery, Calais, is possibly the highest-grade target area ever outlined at Wiluna.”
Sugden says it is hard to tell just how big the Calais discovery is. The current estimate is 235,000 oz., but he says this could swell to 500,000 oz.
The first development drive was due to begin in August, with stoping slated for October.
Sugden says cash costs per tonne could drop to A$340 from A$420 as a result of increased production, better grades, and improvements to throughput.
“We’re making a profit, but we’re not satisfied with cash costs or the margins. We’re producing 120,000-125,000 ounces per annum at the moment. Costs are high and we’re left with a moderate margin. We should be able to lift production to 155,000 oz and triple the margin.”
Wiluna has about 1 million oz. gold in reserves, and the company plans to increase this figure to 4 million.
Meanwhile, drilling at the nearby Williamson/Lake Way exploration project looks bright for Agincourt. Recently reported intercepts include 30 metres grading 7.3 grams gold per tonne, and the last hole of the last section drilled returned 53 metres of 3.97 grams gold, including 3 metres of 41.4 grams.
“The potential for an open pit here seems to be growing,” Sugden says.
— The author is a contributor to Australia’s Paydirt magazine, in which this article originally appeared.
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