Laneway Resources announced that the first gold pour took place yesterday from the mining of high-grade ore at the Sherwood deposit within the 100% owned Agate Creek Gold Project in North Queensland.


Image: Laneway reports first gold pour at Agate Creek project in North Queensland. Photo courtesy of Laneway Resources.

The Company has brought the project into production quickly following the grant by the Queensland Government Department of Natural Resources, Mines and Energy of a Mining Lease (ML100030) over the Sherwood deposit -achieving the first gold pour within 10 weeks of the Lease being granted.

The gold pour yesterday comprised th ree doré bars weighing collectively approximately 22kg of gold and silverbullion.  This  bullion was recovered  from gravity,  ILR (Intensive  Leach  Reactor)  and  CIL  (Cyanide in  Leach)  extraction at Maroon’s Black Jack Processing Plant over the past four days. During this period approximately 1,300 tonnes of ore with an average head grade of approximately 15g/t gold has been crushed, milled and processed th rough Maroon’s Plant.  Processing  rates  are  currently  approximately  15 tonnes per hour with this rate to  be steadily increased over the coming weeks with 25 tonnes per hour being targeted. Final processing rates achieved will be dependent on feed grades and ongoing metallurgical performance including recovery.

Mining operations commenced a fortnight ago in line with previously indicated timelines with the first ore being trucked to Maroon’s Black Jack Gold Processing Plant at Charters Towers last week.  First ore was fed into the crushing  circuit  on  17  April,  with  processing  starting  soon  afterwards.  The  mining  operations  are  beingundertaken  in  the  area  covered  by  the  Mining  Lease  (ML100030)  over  part  of  the  Agate  Creek  Gold  Project. Mining and Transport is currently expected to continue for approximately another 10-12 weeks.

Pursuant to the Mining and Processing Agreement entered into with Maroon, the ore is  being transported to and then processed through Maroon’s wholly owned CIL processing plant.  Utilising an existing processing plant has significantly reduced the capital expenditure and time to first gold production for Laneway.

Laneway anticipates material positive cash flow this year from the mining activities at the Agate Creek high grade project  aided  by  recent  high  prices  for  AUD  denominated  gold.  The  expected  cash  flow  will  establish  a  sound  financial platform for the Company to progress its project portfolio including the Ashford Coking Coal project, its NZ Gold assets and additional exploration appraisal of the broader Agate Creek Project area.

Planning is well advanced for further drilling programs at Agate Creek targeting further potential high grade zones- including potential extensions of the zones currently being mined.  Additional exploration will also target otheridentified  mineralised  zones  that  have  previously  only  been  evaluated  for  potential large tonnage low  grade  processing.  Geological understanding gained from the current mining campaign will allow for greater targeted drilling of the ore zones with the potential to add to the existing Global Resource.

The  exploration  within  Laneway’s  large  Exploration  Tenement  area  at  Agate  Creek  will  be  advanced  with  the  objectives of confirming the potential for additional small tonnage high grade zoned deposits capable of being toll  treated  along  with  the  targeting  of additional  large  tonnage  targets  to  supplement  the  possible  long  term  mining and processing of the lower grade Agate Creek Resources onsite.

Source: Company Press Release