Independence Group NL (ASX:IGO) and AngloGold Ashanti Australia are moving ahead with the development of the Boston Shaker Underground mine at the Tropicana Gold Mine in Western Australia.
The Tropicana Joint Venture, held 30% by IGO and 70% by AngloGold (manager), committed to the development following the successful completion of a feasibility study.
The Boston Shaker Underground development is scheduled to commence during the June 2019 quarter with first gold production expected during the September 2020 quarter.
The JV has awarded the underground mining contract to Macmahon (ASX:MAH), a leading surface and underground mining services specialist.
Boston Shaker Underground – project schedule
IGO managing director Peter Bradfordsaid: “Although Tropicana is not aligned with IGO’s strategic focus on metals that are critical to clean energy, it is a high-quality asset delivering strong free cash flow with significant opportunity for further value enhancement that remains a core part of the IGO portfolio.
“The Boston Shaker Underground development is an important step in the continuing value enhancement at the Tropicana Gold Mine, which remains one of the lowest cost gold operations of scale in Australia.
“This is an exciting opportunity, with the Boston Shaker Underground expected to deliver improved grades and production profile at Tropicana from FY21 for a modest capital investment.
“Appointing Macmahon as preferred contractor also enables unlocking additional synergies and the delivery of even greater value for Tropicana.”
Boston Shaker proposed underground development
The feasibility study has assessed an underground operation mining at a rate of about 1.1 Mtpa (million tonnes per annum) of ore reserves and resources at estimated grades of 3.5 g/t gold to produce about 100,000 ounces of gold per annum over a period of seven years.
This is based on three years production from ore reserves and a further four years from inferred mineral resources.
Importantly, the development of the Boston Shaker Underground mine will enable Tropicana gold production to be maintained at between 450,000 to 500,000 ounces per annum (100%) over the five years to and including FY23.