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Laneway Resources is set to resume gold production from Agate Creek next month, with Maas Group appointed as the mining contractor for the operation.

Material from the Sherwood high-grade deposit at Agate Creek will be toll treated at the Lorena gold mine CIL processing plant, about 15km east of Cloncurry.

Laneway said it was targeting the mining of 43,000 tonnes of ore grading 6.5g/t for 8,950oz in the new campaign at Agate Creek, about 40km south of Forsayth in North Queensland.

This will be carried out in two stages: an initial 18,000 tonnes to be transported and processed by year end followed by 25,000 tonnes of
ore which will be stockpiled and scheduled for transportation and processing following the wet season.

Mobilisation of Maas Group’s mining equipment is due to commence late next week, with drill and blast activities to commence shortly afterwards.

Mining is expected to begin during the first week of October.

“We are very pleased to have finalised the mine plan and contractual arrangements to enable mining of high-grade gold ore at Agate Creek to commence shortly,” Laneway chairman Stephen Bizzell said.

“We look forward to working with our mining contractor, Maas Group, and processing plant operator, Lorena Gold Mine on this next mining campaign.

“With the current high Australian dollar gold prices, we expect very healthy cash generation from this mining campaign beginning in the December 2020 quarter to support the self-funded ongoing exploitation of the Agate Creek project.”