PRECIOUS METALS

Wiluna commences concentrator commissioning

WILUNA Mining Corporation has taken custody of its new plant at its namesake gold project in Western Australia, following a handover from GR Engineering Services, with the expansion project completed on budget but later than originally planned.

 The new concentrator in action

The new concentrator in action

The project was delayed by two months due to COVID-19 related shipping delays and a shutdown at the factory in India where the flotation cells were constructed.
 
In recent days GR has announced practical completion of the A$26 million stage one 750,000 tonne per annum sulphide plant after the first ore was transferred from stockpiles into the circuit, allowing dry and wet commissioning.
 
Wiluna said the switchover from free-milling oxide ore to the sulphide concentrator took a matter of hours during the first shift of operations, and within two days the plant had achieved nameplate capacity.
 
Concentrator commissioning is now underway, with Wiluna anticipating its first shipment in January 2022.
 
Executive chair Milan Jerkovic said the focus now was on ramping up production to nameplate by mid-2022 and achieving design product quality.
 
Wiluna aims to produce 90,000-120,000 ounces per annum of gold in concentrate and 20,000ozpa of gold dore.
 
"The completion and commissioning of stage one is the start of what we plan to be a major, staged transformation of Wiluna from a small free-milling producer to one of the largest gold producing mines in Australia over the next three years producing concentrate and gold dore from our significant sulphide deposits of gold at the Wiluna mining operations," Jerkovic said.
 
Last month the company announced a $53 million capital plan, its third significant fundraising in 12 months, to pay for a variety of programs including pre-production works including development and processing, new infrastructure, financing facility repayments, and an aggressive reserve development and exploration drilling program. 
 
A feasibility study continues into stage two to expand production to more than 250,000ozpa in 2024. That would be up from some 51,500oz for the past financial year.
 
Resources at Wiluna are 7.3Moz with 2.73Moz at the Wiluna mining centre alone. 
 
The company has endured a tough few years as it has struggled with operational challenges, and pursued a transition from oxide to sulphide ore.
 
Wiluna shares have traded between 86.5c and $1.52 over the past year, and were down 1% in early trade at $1, valuing it at $195 million.

 

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