The Mt Magnet operation, which is located some 600 kilometres north-east of Perth in Western Australia, was acquired by Harmony in 2002 with the acquisition of Hill 50 Gold NL. The operation has been on care-and-maintenance since December 2007.
While it has been Harmony’s intention to sell this operation, recent work has indicated the existence of additional potential resources that may be brought to account.
A scoping study is currently being undertaken to re-evaluate this operation. The study is based on a conceptual geological model which has been compiled and entails the consolidation of historic resources into a larger ‘super pit’ concept around the current mill area. Large, open-pit bulk mining would reduce the cash operating cost per ounce compared to the mine’s previous production profile which included production from some old, deep underground mines. A resource definition drilling programme is currently under way to test the assumptions used in the scoping study, with the intent to prove up a five-year mine life and up to 150 000 oz per annum production profile. The study will be completed by the third quarter of FY10.
The site is currently on care-and-maintenance and would require only a short start-up time as all the necessary infrastructure remains in place or is readily available should a decision be made to re-open this mine based on study outcomes.
* Please refer to the forward-looking statements (PDF - 54KB).