Although Australia’s gold production is expected to fall for a fourth consecutive year in 2024, it hasn’t discouraged new and established mid-tier players from staying in the game to take advantage of the yellow metal’s record price.
According to GlobalData, the anticipated drop in output to 10.3 million ounces, a 2.6 per cent decrease from 2023, is primarily thanks to a drop in head grades in some of the country’s larger operations like Cadia, Boddington, Telfer and Tanami (all owned by Newmont Corporation) and Fosterville (Agnico Eagle Mines).
Combined, production from these operations is expected to decline from 1,785 thousand ounces last year to 1,696koz during 2024. Furthermore, several mines have been placed under care and maintenance due to increasing costs and declining margins.
These include Mt Morgans (Dacian Gold), Mt Carlton (Evolution Mining), Halls Creek (Pantoro), DeGrussa and Monty (both Sandfire Resources).
Operations in Western Australia also suffered from significant rainfall in March this year, affecting production for companies like Regis Resources, Capricorn Metals and Gold Road Resources.
This, however, is likely to be partly offset by the start of Bellevue (Bellevue Gold), the reboot of Paulsons (Black Cat Syndicate), Leonora (Genesis Minerals), the Devon pit extension (Matsa Resources) as well as the ramping up of the Penny (Ramelius Resources Ltd) and Norseman (Pantoro) projects.
“Overall, production is expected to recover in 2025, albeit by a marginal 0.7 per cent, and then steady through to 2029 before decreasing in 2030,” GlobalData said in May.
“This short term will be supported by project expansions and the scheduled start up of operations including Yandal, (Yandal Resources – 2025), Trident (Catalyst Metals – 2025), Hemi (De Grey Mining Ltd – 2026) and McPhillamys (Regis – 2028).”
Ultimately, Australian gold production is predicted to increase at a compound average growth rate of 2 per cent between 2024 and 2030, reaching 11.6Moz.
However, activities are expected to slow after 2028 due to the closure of key mines like Duketon South (Regis), Agnew/ Lawlers (Gold Fields) and Beta Hunt (Karora Resources).
Despite recent weather issues, Gold Road has reassured the market, via a production outlook incorporating a seven stage open pit, that a life-of-mine plan for its Gruyere joint venture in WA is expected to have a sustainable output at a rate of around 350koz per annum through to 2032.
Located about 1,200 kilometres north east of Perth in WA’s north eastern Goldfields, the project is a 50:50 JV, with the other partner being international mining giant Gold Fields.
First gold was poured in June 2019 and since then Gruyere has yielded 1,240,464 oz (on a 100 per cent basis) of yellow metal up until December 31 last year. Based on the 2023 ore reserve update, its mine life is expected to extend to at least 2032. In addition, more than 2.8Moz of resources are currently defined below Gruyere’s open pit reserves.
The JV, encompassing Gruyere and the Golden Highway deposits, involves open pit mineral resources of 6.04Moz and reserves of 3.67Moz (again on a 100 per cent basis).
Situated within the Yamarna Belt, the project covers 176 square kilometres of mining tenements. According to the venture partners, this belt holds a distinct position as the eastern most greenstone belt within WA’s prolific Yilgarn gold district.
Meanwhile, earlier this year WA-based Brightstar Resources, via its Selkirk JV (with BML Ventures), poured its Menzies project’s first gold at Genesis Minerals’ Gwalia processing plant near Leonora.
The company has two mining hubs, including Laverton, which sits in one of the best addresses in the Eastern Goldfields, and Menzies 102 kilometres to the south west, the latter of which the company acquired when it merged with Kingswest Resources in May last year.
Laverton has three key project areas – Cork Tree Well, Alpha and Beta. Together they have a resource of 9.7Mt at 1.6 grams/t for 511Koz of gold. All of them are on granted mining leases.
Meanwhile, Menzies, which sits 130km north of Kalgoorlie- Boulder, consists of a contiguous land package of granted mining leases covering a strike length of over 20km.
It contains a series of historically mined high grade gold deposits that produced over 800koz at 19g/t, including 643koz at 22.5g/t from underground operations.
The total current resource is 13.7Mt at 1.3g/t gold for 595koz (with 36 per cent being in the measured and indicated categories).
In March this year, Brightstar announced the off-market takeover of unlisted WA-based Linden Gold Alliance, which is currently operating the underground Second Fortune gold mine south of the company’s Laverton project area.
Post the transaction, Brightstar should emerge with a significant JORC mineral resource of 28.4Mt at 1.6g/t gold for 1.45Moz.
Importantly, it owns its namesake processing plant (currently on care and maintenance), a 60 man accommodation camp and non-processing infrastructure some 30km south east of Laverton and within 75km of the plus 800koz JORC resources within the Laverton hub.
Once all of the corporate activity is finalised, Menzies will have one open pit (Lady Shenton) and an underground operation (Yunndaga), while Laverton shall host two open pits (Lord Byron, which is part of Jasper Hills and Cork Tree Well) and three underground operations (Second Fortune and Fish, which is also part of Jasper Hills), and Alpha.
Last year, a scoping study suggested the company could refurbish its Brightstar plant for $18.5 million.
When this happens, the immediate focus will be to access maximum throughput of the Brightstar, Second Fortune and Jasper Hill ore sources.
Additional RC and diamond drilling has been planned at Cork Tree Well and Linden Gold’s Second Fortune and Jasper Hills (namely the Fish and Lord Byron deposits) projects to target both high grade underground gold resources and open pit baseload feed.