Thursday, 26th October 2006 (2423 views)

Western Australia's Bronzewing mine will be reopened due to the recent hikes on gold prices.

View Resources bought the mine three years ago but since then its extraction plant and accommodation village have just sat unused.

Tim Gooch, managing director of View, said: "We've been modelling on around AUS $800 (£324) an ounce. With the increase in gold price, a fresh set of eyes having a look at it and some exploration, low corporate overheads - we believe we can make a real go of the Bronzewing project."

The company paid AUS $9 million (£3.4 million) for the mine and now say that they have strong investor support and plan to get it operating again within months.

Last week View announced new reserve estimates for their Success deposit which is 20 kilometres south of Bronzewing. A further 20,000 ounces of gold have been added to their reserves.

Mr Gooch said the increases "affirm View's belief that the Bronzewing project will continue to realise significant value beyond that contained in the current mine plan".

 

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