Carosue Dam

    Location

    Saracen’s CDO tenement holdings and gold deposits are located in one of the world’s most prospective gold provinces, incorporating the Laverton and Keith Kilkenny Tectonic Zones, 120km north-east of Kalgoorlie, Western Australia. 

    Status 

    CDO includes the Carosue Dam Project (comprised of the Karari and Dervish gold deposits), the Porphyry Project (comprised of the Porphyry, Million Dollar, Enterprise, and Wallbrook gold deposits), and the Deep South Project (comprised of the Deep South, Safari Bore and newly acquired Box Well gold deposits).

    Saracen acquired the CDO assets in 2006 and commenced commercial production in 2010. This province is home to several world class gold mines and deposits including Sunrise Dam, Granny Smith, and Wallaby. Saracen is building a significant resource position supported by long-term strategic infrastructure in this area and continues to focus on its exploration efforts in this region.

    Demonstrating Saracen’s long term commitment to CDO, during FY2019, Saracen completed the construction of a bitumen airstrip to support the operation’s ongoing growth as well as completing the installation of a thickener and paste plant as part of the existing processing infrastructure.

    CDO infrastructure now consists of a paste plant, processing plant & thickener, two accommodation villages with the ability to support ~400 persons, various water and power infrastructure assets and an airstrip. During FY2020, the Company plans to upgrade the existing CDO processing plant to a nameplate capacity of 3.2Mtpa from the current 2.4Mtpa and will also complete construction of a bespoke 1MW solar farm to support power generation to the accommodation village.

    Outlook

    In FY2020, gold production will be principally sourced from the Karari / Dervish underground mines and potentially the Deep South underground mine with the balance coming from third party ore purchase agreements and various ore stockpiles. Production guidance at CDO for FY2020 is 190,000 to 200,000ozs. Saracen’s primary business plan for CDO over the next 2 years is to develop the operation to achieve a long-term sustained production rate of 240,000 - 250,0000oz per annum by:

    • Delivery aligned to meet or exceed the 7 year production outlook;

    • Increased production rates from the Karari / Dervish underground mines at 1.9 – 2.1Mtpa;

    • Continuing to grow the Karari / Dervish resources along strike and at depth;

    • Completing the Feasibility Study for the re-commencement of mining at the Deep South underground mine;

    • Largely completing the major upgrade at the processing plant including; construction of a regrind mill to increase processing capacity to 3.2Mtpa, upgrade gravity and elution circuits and install two additional CIL tanks (Tanks 8 & 9);

    • Commencing open pit mining from the Porphyry Mining Centre to provide additional long-term mill feed at a rate of ~800,000tpa;

    • Continuing to upgrade existing infrastructure on site to support growth of the Operation including a camp upgrade and the establishment of Porphyry Mining Centre infrastructure;

    • Continuing the major exploration programme along the “Corridor of Riches” and near mine extensions;

    • Completing study work into alternative haulage options from the Karari / Dervish underground mines;

    • Completing ore sorting studies into the beneficiation of low grade stockpiles; and

    • Continuing the focus on reducing costs throughout the operation to generate strong and sustained cash flows.