Blasting at Agate Creek has exposed the the first ore as mining for gold commences on the lease near Forsayth in North Queensland.
Sole owner Laneway Resources is anticipating around 9,000oz gold to be mined in two stages from the Sherwood Open Pit in the current campaign.
It plans to mine 43,000 tonnes grading at 6.5g/t from the Sherwood open pit, to be processed in two stages.
The initial 18,000 tonnes will be processed at the Lorena gold mine processing plant from about mid-November.
The remaining 25,000 tonnes is set to be stockpiled for transporting and processing post wet season.
Laneway is continuing to progress other processing plant options which may be utilised longer term for the processing of high grade ore from Agate Creek including for the second batch of ore from this mining campaign.
The potential for further high grade mining beyond this campaign has been identified with Whittle pit optimisation generating a much larger open pit shell containing 120,000 tonnes at 5.7 g/t gold for 22,000 ounces.
“With mining activities now underway at a time of continuing high gold prices, we are looking forward to the significant cash generation from this mining campaign to support the self-funded ongoing appraisal and exploitation of the Agate Creek project and the company’s broader project portfolio,” Laneway chairman Stephen Bizzell said.