The Queensland Department of Environment and Heritage Protection issued the final approval for Sarsfield, in line with Resolute’s schedule.

“The approval to recommence mining at Sarsfield is a testament to our status as a responsible operator and also demonstrates the collaborative support we are receiving from the Queensland government and local agencies,” Resolute managing director John Welborn said.

The restart of Sarsfield follows the successful restart of the nearby Nolans East pit, part of the Ravenswood expansion project.

The Ravenswood expansion will comprise the development of several open pits, which will replace the Mt Wright underground mine, due to close this year.

The 13-year project will extend the mine life until at least 2029, and will boost average annual production to 120,000 ounces of gold per annum at all-in sustaining costs of $A1166 per ounce.

“The next stage our of expansion plans require approvals to recommence mining activities at the Sarsfield open pit before advancing to the adjacent Buck Reef West deposit,” Welborn said.

Resolute is aiming to have approval for Buck Reef West by mid-2018.

In December, the $134 million expansion project was granted prescribed project status by the Queensland government, which fast-tracks the approval process.

RBC Capital Markets analyst Paul Hissey said that while the Syama mine in Mali was the key driver of Resolute, Ravenswood was important to the overall fortunes of the company.

“Approvals for Buck Reef West are the critical element for Ravenswood, not because of any risk to continuity at the operation (that has now been secured with the formalisation of Sarsfield), but because it could provide earlier access to higher grade, lower strip/development ore, which in turn would lift cashflow and valuation (on a pro-forma basis),” he said.

Shares in Resolute were down by another 5% to $1.27, the lowest level so far this year.