27 June 2014
The company planning to restart gold mining at Toms Gully in the Northern Territory hopes a new drilling program will uncover more riches to increase the mine life and attract investment.
The mining downturn in Australia has made life difficult for Primary Gold Limited, which wants to restart mining and processing at the Toms Gully project, 90 kilometres southeast of Darwin.
“The financial markets have been very poor, particularly in the gold sector and particularly hard for gold-juniors like ourselves,” admits managing director Clay Gordon.
“We have found it difficult to raise the capital required for this project [of around $19 million].
“So if the market is not ready for us, we’re taking the opportunity to make the product even better.
“So we’ve brought the drill-rigs in and we plan to do a 5,000 metre, 15 hole program, with the aim of adding another two years to the mine life and assess the potential to increase that further.”
Other challenges in front of Primary Gold include the treatment and de-watering of the Toms Gully open pit, which contains roughly three-gigalitres of water.
The company also wants to upgrade the processing plant from 250,000tpa to 350,000tpa.
Mr Gordon says the company had been ‘a bit optimistic with timeframes’, but a mine restart in 2015 was very feasible.
Courtesy of ABC Rural