The Tropicana joint venture - comprised of AngloGold Ashanti and Independence Group - has given the green light and is set to begin the development of the $105 million Boston Shaker Underground gold mine in Western Australia by June of this year.
“The Boston Shaker Underground development is an important step in the continuing value enhancement at the Tropicana Gold Mine, which remains one of the lowest cost gold operations of scale in Australia,” Independence Group Managing Director Peter Bradford said.
In addition, Macmahon Holdings has been awarded a five-year $170 million contract for the delivery of mining services at the new underground mine. The company is anticipated to begin works on site by May 2019.
“We are excited hat our long-term alliance partnership with AngloGold Ashanti and Independence Group has grown to also include its new underground development at Tropicana, where we have been operating the surface mining since 2012. This is a great project to be associated with and we look forward to working closely with out client to safely and efficiently develop its underground project over many years to come,” Macmahon Holdings Chief Executive Officer Michael Finnegan said.
The Boston Shaker Underground development is expected to contribute an average of approximately 100,000 ounces to the mine’s production starting in 2021, allowing the Tropicana Gold mine to maintain its production rate of 450,000 - 500,000 ounces a year over the next five years.
“Underground mining at Boston Shaker will leverage further value from this high performing operation, achieving pay-back in just over three years,” AngloGold Ashanti Chief Executive Officer International Ludwig Eybers said.
The joint venture expects first gold at the new Boston Shaker Underground mine in September 2020.
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