Wiluna Mining Corporation Ltd (ASX:WMC, OTC:WMXCF) has achieved 6,559 ounces of gold production in May 2022, ahead of expectations, at its Wiluna Mining Operation in the Western Australian Goldfields.
Of this production, 5,855 ounces comprised gold in concentrate and 704 ounces comprised gold doré.
During the month of May, Wiluna processed 66,251 tonnes at a grade of 3.46g/t, an improvement on the past 2 months.
Transforming to multi-circuit operation
The Wiluna Mining Operation is currently in development to transform Wiluna from a modest, cashflow positive producer of free milling ore via a conventional CIP plant to a multi-circuit operation producing circa 110-120kozpa once commercial production is reached.
On completion, the development plan will enable Wiluna to treat all the ore types at Wiluna through four processes, including;
- Existing 2.1Mtpa CIP process plant;
- 750,000tpa flotation concentrator which is now complete, following successful commissioning in December 2021;
- Gravity circuit which produces gold doré; and
- Tailings retreatment plant (WilTails) which will link tailings reclaim and reslurrying (as well as flotation tailings) with the existing CIP circuit to produce gold doré.
Flotation plant progress and concentrate sales
Construction of Wiluna’s 750ktpa flotation plant was completed (with successful commissioning) in December 2021.
It is currently ramping up to its full production rate, with commercial production expected by the end of CY2022.
The concentrator was commissioned to process ~750ktpa, but recent outperformance of the nameplate capacity has demonstrated processing rates of up to ~900-950ktpa.
Since ramp up began (1 January 2022) and up until 31 May 2022, Wiluna has produced 5,084 bags of gold concentrate (gold content of ~18,913 ounces), comprising: 3,240 bags which have been shipped to one of Wiluna’s off-take partners and 1,844 bags which have been produced and sold to an offtake partner but have yet to be shipped.
Further, the company has the below (unaudited, unreconciled) receivables, inventory & gold in circuit balances on 31 May 2022.
Receivables comprise invoices issued before 31 May 2022 that remain unpaid. Inventory means all individually assayed bags that are as yet uninvoiced.
Efficiency and cost review
Wiluna continues to work on optimising productivity and costs based on efficient deployment of underground and surface equipment, targeting costs at or below industry standards as it moves towards commercial production.
This will be achieved by focusing on reducing development costs, increasing the grade of ore mined, efficient production methods and support services.
Key improvements include:
- Resizing mining equipment around 3 core mining areas through to commercial production: reduction of at least 1 jumbo and associated support equipment in the short term;
- Limiting mining works and development to only core mining areas required to achieve commercial production; and
- Demobilising all drill rigs in the short term (recently occurred) with a view to bringing back 1-2 rigs in the coming months as required to assist with any grade control work.