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Thursday, 31st August 2006 (3469 views)

Crescent Gold's board has formerly approved the development of its project in Australia.

The Laverton Gold project is in the eastern goldfields of Western Australia. The decision was made after the company received finance approval for A$25 million with contingencies for project over-spends and other unexpected costs included. Major contracts have also been signed this week.

The company hopes to implement open-pit mining at the site by the end of the year and this will see production increase to 90,000 ounces of gold per year. The company will use carbon-in-pulp and conventional gravity techniques to facilitate this.

A previous resource estimate detailed that the mine would have a life of 4.1 years and that it would make a profit of A$268 on every ounce of gold it produces. It was expected to generate A$96 million.

Andrew Haythorpe, managing director at Crescent gold, thinks these targets will soon be redefined: "The mine life of four years will increase. A new reserve estimate is being prepared following nine months of continuous, successful drilling. Due to the second ball mill's larger than planned capacity, it will reduce costs and creates opportunities for future expansion."

 

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