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The first high-grade ore has been trucked to the Lorena processing plant from the Agate Creek gold mine in North Queensland after mining began a month ago.

Mine owner Laneway Resources has flagged a busy 2021 as it plans development of a larger open pit area at Agate Creek to mine about 120,000 tonnes of high-grade ore for 22,000 oz gold.

That includes the 43,000 tonnes to be mined for for about 9000 oz gold from the current campaign at Agate Creek’s Sherwood deposit.

Laneway also continues to evaluate and progress the exploration of the broader mineralisation potential at Agate Creek, where a mineral resource of 471,000 ounces of gold has been defined thus far.

“We continue to make steady progress with the current mining activities at
Sherwood, with the first of the high-grade ore now having been delivered to the Lorena processing plant,” chairman Stephen Bizzell said.

“The processing of Laneway’s ore and receipt of revenue has been delayed until early January but this shouldn’t impact on the plans the company has for a busy 2021.

“The coming quarter should see healthy positive operating cashflow to support the planning, approvals and development of the larger volume of high grade ore encompassed by the larger Whittle pit shell, and drilling programs targeting over 60 regional exploration targets.

“Consideration of longer term options for onsite processing of the almost half a million ounces of gold already identified at Agate Creek remains a key priority.”

About 3000 tonnes of ore grading about 6 g/t gold has been mined and stockpiled on the ROM pad at the site since operations began a month ago.

A further 5900 tonnes of low grade ore (grading about 2.5 g/t) and more than 60,000 BCM of waste has also been removed from the pit.

The initial tranche of ore is to be toll processed at the Lorena gold mine near Cloncurry.

Laneway said changes in the scheduling of different ore sources being processed at Lorena, minor plant reconfigurations necessary to process Laneway’s ore, and allowing for the planned plant shutdown over the Christmas break, meant the processing of Laneway’s ore should begin in the
first week of January.

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