Kalgoorlie Mining Company (ASX: KMC) has moved another step closer to bringing the Bullant gold mine back into full production, with the successful completion of the dewatering process.
The lower reaches of the mine are now accessible for mine development and ore extraction.
Kalgoorlie Mining said that the company has been able to test ground support that was submerged during the mine closure period, with all pull tests of ground supports passing design specifications.
The results have shown that there will be little requirement of remedial work which will equate to a major cost saving to the company.
To keep costs in check - the high capacity pumps used for the dewatering will now be taken off-hire and returned to suppliers, replaced with company owned smaller capacity units which are sufficient to handle the mines future water management.
This latest positive news for Kalgoorlie Mining follows hot on the heels of an announcement earlier in the week that the company had positioned itself to receive cash flows in the short term after securing a ore purchase agreement with an Australian subsidiary of Barrick Gold Corporation (NYSE: ABX).
Kalgoorlie Mining will truck the gold ore from Bullant, with the opportunity for between 5,000 to 20,000 tonnes per month to Barrick's Kanowna Belle facilities for sale and processing.
The amount of monthly deliveries to Barrick will be dependent upon Kalgoorlie Mining’s mining rates and the economics of transporting the mined ore to the facility, over leaving the ore stockpiled for future processing at the company’s own gold processing facility which is forecast to be in operation in 2012.
The major plus for Kalgoorlie Mining is the ore from Bullant was previously processed by Barrick when Barrick owned the mine.
The first ore delivery and sale to Kanowna Belle in expected in the coming month.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18525/kalgoorlie-mining-company-eyes-full-gold-production-at-bullant-post-dewatering-18525.html
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