PRECIOUS METALS

Wiluna concentrator operating above nameplate

WITH its stage one concentrator now humming along, Wiluna Mining Corporation is at a pivotal time in its life, and dreaming of a 2022 will deliver a significant boost in gold production.

 The first WMC concentrate bagged and ready for sale

The first WMC concentrate bagged and ready for sale

Commissioning of the sulphide concentrator commenced late in the December quarter, and the plant is expected to reach its full run rate of 100,000-120,000 ounces per annum in June.
 
The miner said the concentrator has been successfully commissioned, and had outperformed nameplate capacity, which puts it in a good position as it completes its transitional phase over the next six months.
 
For the December quarter, the Western Australian miner's namesake operations at Wiluna produced 7750 ounces, with sales of 5863oz at an average price of A$2439.42/oz. Costs were not disclosed.
 
WMC reported positive net cash from operations, before overheads, of $8.3 million, with the company ending the quarter with cash and bullion of $41.6 million following a successful $53 million capital raise, and net debt of $23 million.
 
It had 156,000oz hedged at US$1820/oz, a negative mark-to-market position of A$5 million.
 
WMC ended 2021 with 1159t of gold concentrate with an average grade of 69 grams per tonne ready for export in early February.
 
It was another big spending quarter to support the transition from free-milling ore to sulphide material, with almost $47 million outlaid to support the concentrator development, work on the Wiltails tailings recovery project continues, and 2739m of development were completed by contractor Byrnecut, in line with expectations.
 
WMC said its underground sulphide development was on schedule, and 88,731t of ore was mined over the six months to December 31, with 139,000t of ore in stockpiles.
 
Wiltails is now 20% complete and should allow recovery of a further 579,000oz. It should be commissioned in May.
 
Looking ahead, WMC has commenced a 40,000m discovery drilling program, hoping to increase resources from 5.5Moz at 2.19gpt, and it is finalising its stage two feasibility study for March, targeting an expansion to 250,000ozpa.
 
A UK listing is also still on the cards.
 
WMC shares, which have traded between 86c and $1.39 over the past year were off 2% in early trade at $1.07, valuing it at $230 million. 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.