29Metals Ltd. has awarded a four-year underground mining contract to Byrnecut Australia Pty Ltd. for the Gossan Valley mine at Golden Grove.
The contract award to Byrnecut enables operational and commercial synergies, including the ability to share equipment and personnel across Golden Grove mining operations.
Once in production, Gossan Valley is expected to enhance Golden Grove’s life-of-mine by providing a replacement, higher grade ore source for declining ore production at the Scuddles mine.
Gossan Valley also has the potential to extend the project’s mineral resources estimates, which remain open at depth.
29Metals CEO James Palmer said awarding the mining contract is another step in achieving first ore from Gossan Valley by the end of 2026.
“As the second highest grade ore reserve behind Xantho Extended, development of Gossan Valley optimises Golden Grove’s life-of-mine production profile and enhances overall production flexibility as a relatively shallow and independent mining front,” according to the CEO.
Gossan Valley was discovered in 2010 with an initial mine life of 6 years, based on feasibility studies. It has a mining rate of up to 585,000 tonnes per annum and ore reserves of up to 1.2 million tonnes.
