Today on April 23, 2019, Laneway Resources Ltd (ASX: LNY) announced that its First gold pour has occurred from mining of high-grade ore at Laneway Resources’ 100% owned Agate Creek Gold Project in North Queensland. Following the grant by the Queensland Government Department of Natural Resources, Mines and Energy of a Mining Lease, the company brought the project into production quickly, achieving the first gold pour within 10 weeks of the lease being granted.
The gold pour from the previous update comprised three doré bars weighing collectively around 22 kg of gold and silver bullion. This bullion was recovered from gravity, ILR (Intensive Leach Reactor) and CIL (Cyanide in Leach) extraction at Maroon’s Black Jack Processing Plant over the past four days. During this period around 1,300 tonnes of ore with an average head grade of around 15g/t gold has been crushed, milled and processed through Maroon’s Plant. Processing rates are currently around 15 tonnes per hour with this rate to be steadily increased over the coming weeks with 25 tonnes per hour being targeted. Final processing rates achieved will be dependent on feed grades and ongoing metallurgical performance including recovery.
The first ore were trucked to Maroon’s Black Jack Gold Processing Plant at Charters Towers last week, as the commencement of mining operations were in-line with the previously indicated timelines. On April 17, 2019, the first ore was fed into the crushing circuit with processing started soon afterwards. Mining and Transport activities at the Agate Creek Gold Project is expected to continue for around another 10-12 weeks.
As per the mining and processing agreement with Maroon, the ore is being transported to and then processed through Maroon’s wholly owned CIL processing plant, which has led to reduction in the capital expenditure and time to first gold production for the company.
The company expects positive cash-flow from the mining exercise at the Agate Creek high grade project due to the recent uptick in prices of gold (which are denominated in AUD). It will help the company to advance its project portfolio, which also includes its NZ Gold assets, the Ashford Coking Coal project, and additional exploration assessment of the broader Agate Creek Project area.
Laneway Resources is well advanced for further spudding programs at the project site including potential extensions of the zones currently being mined, which is also expected to target other identified mineralised zones that have previously only been evaluated for potential large tonnage low grade processing.
At the time of writing (on April 23, 2019, AEST: 3:53PM) the stock of Laneway Resources was trading at $0.015 up 7.143% with the market capitalization of ~$51.52 Mn. Today, it made day’s high at $0.016 and day’s low at $0.015 with average daily volume of 41,073,832. Its 52 weeks high was at $0.016 and 52 weeks low at $0.002 with an average volume of 10,542,719. Its absolute return for 5 yrs, 1 yr, 6 months, and 3 months are 250%, 300%, 250%, and 180% respectively.