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Avoca to develop underground mine in WA |
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Avoca Resources Ltd says it will develop a second underground gold mine at its Higginsville project in Western Australia.
Avoca said it had a new reserve estimate for the Chalice deposit at Higginsville of 720,000 tonnes, grading 5.1 grams per tonne (g/t) and containing 118,000 ounces of gold.
"The new Chalice underground reserve will allow Avoca to develop its second underground gold mine at Higginsville and will be the third mining reserve after Trident and the Fairplay open pit reserve," Avoca said.
The miner estimates underground development will commence mid-2010 following the dewatering of the Chalice open pit.
Capital costs are estimated to be $42 million although Avoca is looking into potential savings of $3 million using pit-dewatering options.
It plans to produce 57,000 ounces at 5.5 g/t in 2011/12, 44,000 ounces at 5.5 g/t the following financial year and 17,000 ounces at 3.8 g/t in 2013/14.
Avoca managing director Rohan Williams said the advancement of the Chalice deposit would help the miner to achieve its goal of a more than 10-year mine life for the Higginsville project.
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