Evolution Mining has approved a significant capital investment to extend the life of its Cowal gold mine in New South Wales, Australia. The A$430 million (US$273.4 million) Open Pit Continuation project will keep the mine running until at least 2042.
Strategic Expansion Boosts Gold Output and Lifespan
The expansion plan involves developing the E42 pit further and opening three nearby satellite pits: E46, GR, and E41. This development follows full regulatory approvals from both the Australian federal government and the New South Wales Department of Planning, Housing and Infrastructure.
Evolution Mining projects the expansion will produce 1.94 million ounces of gold, generating an internal rate of return (IRR) of 34% at a base gold price of A$3,300 per ounce. At current market prices, that IRR increases dramatically to 71%, with a shortened payback period of just 1.5 years.
Underground mining at Cowal is also scaling up. By FY2026, Evolution expects to mine 2.4 million tonnes annually, contributing around 30% of the feed and 50% of total gold production at the site.
Capital Efficiency and Cost-Saving Measures
To minimize upfront costs, Evolution acquired 11 low-hour, second-hand haul trucks, saving about A$35 million (US$22.26 million). For FY2025, the company expects to spend between A$65 million (US$41.3 million) and A$70 million (US$44.5 million) on fleet and infrastructure, with another A$5 million (US$3.2 million) dedicated to development to support full operations by July 2025.
Since acquiring the Cowal mine in 2015, Evolution has generated more than A$1.62 billion (US$1.03 billion) in net cash flow from the site. In just the first nine months of FY2025, Cowal contributed A$479 million (US$304.6 million).
CEO Emphasizes Cowal’s Strategic Importance
Evolution Mining CEO Lawrie Conway emphasized Cowal’s role as a cornerstone asset, noting its full repayment of acquisition and development costs. He highlighted the robust returns and minimal risk:
“Cowal is undoubtedly a world-class asset. This expansion ensures production stability and economic benefits for stakeholders for years to come.”
Exploration at Cowal remains ongoing, especially around underground high-grade zones. The open pit extension is also expected to pave the way for deeper, higher-grade underground mining in the future.
This strategic move aligns with Evolution Mining’s broader plan to stabilize production across its portfolio, which includes operations in Queensland, Western Australia, New South Wales, and Canada. Evolution continues to guide FY2025 production at 710,000–780,000 ounces of gold and 70,000–80,000 tonnes of copper, with all-in sustaining costs between A$1,475 and A$1,575 per ounce.
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