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Adelong Project Development

Upgrade the central processing plant to treat ores from several deposits

Scoping Study outlines plans to upgrade the central processing plant and take production from several deposits. The new Plant is designed to improve economies with increased capacity and with efficient recovery of gold. Any additional resources and production can add to the mine life and substantially increase financial returns.

Development Plans

Processing Plant


  • The vast majority of the capital costs outlined in the Scoping Study goes into the upgrade of the Processing Plant.
  • Plan provides for an increase plant capacity to 35t/hr and generate +92% gold recovery with a major new gravity and cyanide circuit. The combined effect is vastly improved economics.
  • Study also assumes we operate plant on a single shift basis within current approvals but expand as new mines are approved.
  • Scoping Study is based on using Contract Miners quotes.
  • Plan is to produce from open cut mining at Challenger , Caledonian and Currajong with a minor contribution from underground production at Challenger.
  • Mullock dumps are commercial to treat with the plant upgrades, but values have not been included in the Scoping Study
  • Additional production may come from existing underground resources. Only around 55% of total resources assessed.

Aerial photo showing current Plant and Mine

Expansion Potential

Near Term

Longer Term

  • Gibraltar, Sawpit and extensions to Caledonian offer near term additional resource potential.
  • Other Exploration Targets can potentially supplement the near-term producers if an aggressive exploration program undertaken.
  • Primary exploration plan is to target multiple vein deposits or large lower grade deposits for shallow open cut development.
  • Several major mineralised structures have never been tested including the Wondalga Shear, the 3km of mineralisation south of Lady Mary and the Paley’s Reef area.
  • Regional option to import ores to the Adelong Processing Facility as its location on the Snowy Mountain Highway allows 40t trucks and importing ore from a +100km radius is commercially possible.

Plant & Development Options

Review of development options completed, upgrade expected

Ability To Produce Gold Onsite


Upgrade and Reconfigure

  • Project acquisition included all plant and equipment from past operation. Various studies show plant will require upgrading and reconfiguring to operate efficiently.
  • Extensive metallurgical testing was undertaken to determine the best commercial options for upgrading the Plant.
  • Metallurgical testing showed a major portion of gold can be recovered as a concentrate using simple spirals at fairly coarse grind size. The Project is approved for the use of cyanide so concentrates and fines generated in the mill will be cyanided.
  • Combined with planned upgrades to crushing and grinding circuit, the Company plans to increase plant throughput from around 6t/hr to 35t/hr and produce gold dore on site.

Development Options

Adelong Gold Scoping Study was designed to look at the development options:

  • Plant economics suggest a processing cost of around 0.5-0.6 g/t Au is possible making most of the mullock commercial to treat in a gravity circuit.
  • A review of contract mining options for developing Challenger orebody as an open cut operation (with possibly underground extensions) has shown to be viable. Additional open cut mining at Caledonian and Currajong factored into the long term plans for the project.
  • Processing plant can be turned to a 24h/day operation to expand production once additional mines are approved for development.
  • Regional exploration programs are viewed as providing an option for major additional future expansion of the project and opportunity.

Re-open Mine

Review of remaining resoures provides enourmous potential

  • Scoping Study provides the framework for commercial development of the Adelong Gold Mine and is the basis for proceeding with:
    • Finalising approvals to proceed with development
    • Getting more attractive commercial quotes for contract mining, capital items and other servicesRefining some of the development planning  aspects (waste dumps locations, choice of power supply, source of clay for tailings dam, etc.)
    • Sourcing of finance for the development
    • Re-opening the mine/realising the value for shareholders
  • There is enormous potential to build on this plan through the review of remaining resources, exploration/resource expansion, and regional acquisitions or toll treating
  • All these additional resources are likely to increase Mine Life and Profitability

Regional Potential

Potential to truck ore into the Adelong processing plant

  • The Adelong Gold Project Processing Plant is located just 1.5km from the Snowy Mountain Highway
  • This plant is the only processing plant approved for use of cyanide in +100km radius
  • That gives it a major advantage that will allow it to acquire /process ore/concentrates from the region
  • The Metallogenic Map (Wagga Wagga 1:250,000) shows there are a large number of gold deposits in the surrounding region that could potentially feed the Adelong Gold Plant