Alacer postpones South Kalgoorlie expansion
17th Jul 2012
JULY 17 – Canada’s Alacer Gold has called a halt to its South Kalgoorlie Operations Expansion Project in Western Australia, saying it needs more time for geological and mine engineering work.
Since acquiring the project on the Boulder-Lefroy Fault in April 2010, Alacer’s wholly owned subsidiary Avoca Resources has focused its exploration on converting the known resources to reserves to feed the project’s 1.2Mtpa Jubilee processing plant.
In the last 18 months, the openpit probable mineral reserves have grown nearly 600% to 12.6Mt at 1.3g/t gold for 542,000oz (excluding Frog's Legs reserves).
Alacer says development work has secured the near-term baseload of ore to feed the existing Jubilee plant, but its expansion plan centred on replacing it with a 2.5Mtpa plant which requires a larger reserve base.
The company will spend $A18M on exploration in 2012 and says it’s confident it will be able justify SKOEP in the future.
Alacer has spent $7.8M on engineering, design and procurement of long-lead time capital equipment, and a further $3.8M will be spent in coming months to complete the purchase of capital equipment such as the ball mill, all of which will be stored until utilised. A further $9.5M has been spent on pre-stripping and $6M for power line relocation.
Demobilisation and standing down of a portion of the mining fleet will result in a one-time charge of $4.3M.
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