Stawell
From Closure Mode to Renewed Life
While modern production history at Northgate's Stawell mine extends over the last 25 years, the operation also has a long history of gold mining dating back to the mid-19th century Victorian gold rushes. This well-run, stable and mature operation is a fully-permitted underground gold mine, with a history of continued exploration success, but a relatively short reserve life horizon.
Prior to the acquisition by Northgate in February 2008, Stawell had a two-year mine life left, with very little exploration funding, and was being managed with a closeout trajectory. However, confident of finding more ounces in anticipation of extending the mine life at Stawell, the company invested $4.1 million in exploration spending in 2008. The result: Northgate more than replaced reserve depletion, adding one of the single largest reserve additions in the mine's history and also significantly increased the resource base.
This exploration spending, combined with capital improvement projects on mine infrastructure and the mobile mining fleet, and backed by a dedicated and knowledgeable workforce, has transformed Stawell from a closure mode to an operation with renewed life and potential for a successful future.
Investments made during 2008 included a fleet of new state of the art 60-tonne underground trucks, an investment that has improved ore haulage efficiency by 30%. Northgate has also made significant upgrades to the underground ventilation and cooling infrastructure, all of which have enabled the operation to maintain production capacity as the mine gets deeper.
In 2009, Northgate will continue to develop the mine towards the newly added GG6 zone, and will continue to explore down plunge in both the Golden Gift ore body and the Magdala trend. There is little doubt that the mineralization continues at depth on both horizons, with some very exciting drill holes in the sub-GG6 area and at North Magdala. A $4 million exploration budget in 2009 will target these areas and will undoubtedly provide further ore sources for the mill. Additionally, in a heightened gold price environment, there are significant areas of mineralization in the upper levels of the mine, which will be evaluated and likely converted into reserves.
In anticipation of continuing a long and successful mine life, Northgate has recently permitted a tailings dam expansion at Stawell for an additional nine years of operation, with the first of two lifts being constructed in the first half of 2009. The Stawell mine is located alongside the township of Stawell, northwest of Ballarat in central Victoria, approximately 250 km west of Melbourne. Stawell has a population of approximately 6,500 people and most of the mine’s workforce resides in the town or immediate surrounding area.
107,000
ounces of gold projected in 2009
$4 million
exploration budget in support of mine life extension