Laneway Resources Limited (ASX: LNY) is an ASX listed company which is in the business of mining and exploration, having projects in Coal and Gold. A mining lease application for the company’s high-grade Agate Creek Gold Project has recently been submitted. On 4th April 2019, the company announced that it has continued significant progress towards the commencement of mining operations. The progress continued after recent approval by the Queensland Government Department of Natural Resources, Mines and Energy of a Mining Lease (ML100030) over the Sherwood deposit within the 100% owned Agate Creek Gold Project in North Queensland. The mining lease (ML100030) encompasses a total area of 689.3 hectares.
The mining operations are expected to commence from next week in accordance with the previously notified timeline. As per the Mining and Processing Agreement which the company entered into with Maroon Gold Pty Ltd (which has now been appointed operator of the site), Maroon’s wholly owned CIL processing plant will get the transported ore in order to process it. A recent commissioning of the Black Jack Plant Site has made the CIL processing plant fully operational. The utilisation of the existing processing plant of CIL by Laneway Resources will help it to cut down on its capital expense and required time for first gold production.
The mining camp has been mobilized to the site which is now fully developed, ready for the first schedule of mining staff to come during the next week. Some members of the initial mining crew undertook site inductions on 3rd April 2019. The mining fleet is still being mobilised with all necessary equipment for the commencement mining operations. The pre-stripping of the open cut and waste dump areas have been started by utilising a grader and bulldozer on the site. After the completion of the mining campaign, rehabilitation of disturbed areas would be done from the stockpile of top soils and seed banks.
The company has made all the statutory rental payments and also filed for the financial assurance under Environmental Authority which was necessary to commence the mining operations. The Environmental Authority is also ready for the commencement of suggested mining operations.
A recent drilling program encountered numerous and consistent high-grade intersections which exceeded 100 grams per tonne gold and grades of up to 564 grams per tonne gold. Also, spectacular high-grade gold assay results were seen which are being used to determine key mining areas near completion.
The mining operations at the Agate Creek site is expected to generate a cash inflow this year which is also supported by recent high prices for Australian dollar-denominated gold. The cash flow will help the company to establish a financially strong platform t progress in its other projects.
The stock shot up by a massive 22.2% in a single trading session and closed at A$0.011 as of 4th April 2019 compared to the previous closing of A$0.009. Today, the stock is trading flat at A$0.011 (as at 2:25 PM AEST, 5 April 2019). The stock has given a return of 266.67% in the last six months while YTD performance stands at 175%.
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