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Queensland gold producer Evolution Mining has reported a record profit of more than $234 million in its half-year financial results.

The strong performance saw the company declare a fully franked interim dividend of 7 cents per share, totalling $119.6 million.

Evolution operates and owns four Australian gold mines – Cowal in New South Wales, Mungari in Western Australia, Mount Carlton and Mount Rawdon in Queensland.

It also owns the Red Lake gold mine in Ontario, Canada and holds an economic interest in the Ernest Henry copper-gold mine in North West Queensland.

For the six months to December 31, Evolution produced of 350,326oz of gold at an all-in sustaining cost of $1182 per ounce.

New Mount Carlton decline to target silver

Mount Carlton, 150km south of Townsville, produced 24,074oz of payable gold in the last half of 2020 compared to 30,664oz in the same period of 2019.

The company said it had started dewatering activities in the A39 pit there in preparation for developing a decline to access high-grade silver ore later this year.

The group also acquired a 100 per cent interest late last year in the nearby Crush Creek project, where drill results have demonstrated its potential to extend the life of the Mount Carlton gold operation.

Evolution achieved 70 per cent ownership following sole funding $7 million of exploration expenditure and acquired the remainding stake for $4.5 million.

The company said drilling continued at Crush Creek with excellent initial results returned at Gamma including 4m grading 14.7g/t gold.

Mount Rawdon produced 44,330oz of payable gold in the last half of 2020 compared to 39,588oz in the same period of 2019.

This was despite a rock fall in the open pit and heavy rain during that time.

During the six-month period to December 31 the Evolution board approved development of the Galway exploration decline at Cowal – the mine’s second decline.

It will enable additional drilling to increase underground ore reserves and will also be used for future production.