29Metals Awards Gossan Valley Mining Contract to Byrnecut Australia

29Metals Awards Gossan Valley Mining Contract to Byrnecut Australia

29Metals awarded Byrnecut Australia the Gossan Valley mining contract after a competitive tender. The four-year contract will help 29Metals achieve first ore production from the Gossan Valley by 2026. This collaboration will improve the efficiency of the Golden Grove operation in Western Australia and create operational synergies.

Byrnecut, already the contractor for the Gossan Hill and Scuddles mines, will continue at Golden Grove. The integration of the two projects allows for shared equipment and personnel, reducing costs and streamlining operations. The effort will boost overall productivity and optimize resource allocation.

Key Details of the Gossan Valley Project

The Gossan Valley project lies about 7 kilometers south of the Gossan Hill mine. Discovered in 2010, it is fully owned by 29Metals. The project will strengthen Golden Grove’s life-of-mine plan by providing high-grade ore to replace declining output from the Scuddles mine. The Gossan Valley deposit contains 5.6 million tonnes of ore, with grades of 1.1% copper, 5.5% zinc, 0.6g/t gold, and 18g/t silver.

The mine will operate for an initial six years, producing up to 585,000 tonnes per annum (tpa). The successful development of this project will maintain Golden Grove’s production capacity and offset decreasing production from other mines.

Strategic Impact on Golden Grove Operations

29Metals CEO James Palmer highlighted the strategic importance of the Gossan Valley project. He noted that Gossan Valley holds the second-highest grade ore reserve, after Xantho Extended. This high-grade resource will optimize Golden Grove’s production. Furthermore, the relatively shallow mining front will increase production flexibility. Palmer also pointed out the operational and commercial synergies achieved by keeping Byrnecut on board.

Byrnecut’s ongoing involvement will help integrate teams and resources seamlessly. This will maximize productivity at Golden Grove. With the Gossan Valley project advancing, 29Metals is on track to meet its target of first ore production by 2026.

SuperMetalPrice Commentary:

The award of the Gossan Valley mining contract to Byrnecut marks a crucial milestone for 29Metals. The strategic collaboration with Byrnecut will not only streamline operations but also improve cost-efficiency and enhance the production profile of Golden Grove. As the mining industry increasingly focuses on maximizing the life-of-mine of established assets, the Gossan Valley project represents a key development for 29Metals’ long-term growth in the competitive copper and zinc markets.