Doray Minerals initiated construction of its Deflector gold project in the southern Murchison region of Western Australia, 160 km east of the port of Geraldton, in early August. Mining is planned to begin from an open pit beginning in mid-2016. The majority of the orebody is in narrow high-grade veins that will be mined by mechanized underground mining techniques.
A gravity-flotation processing plant is being built to provide for extraction of both the gold/silver and the copper content in the ore. The gravity circuit will produce gold bullion and will be followed by a flotation circuit that will produce a gold-silver-copper concentrate for sale.
Deflector development is based on proven and probable reserves totaling 2.6 million mt at a grade of 6.6 g/mt gold, for 551,500 oz of contained gold. Initial mine life is planned at six years. The mine is located on a 530-km2 land package that offers significant exploration upside.
Doray currently produces gold from its Andy Well mine, also located in the Murchison region. Andy Well produced 88,736 oz in Doray’s fiscal year to June 30. Following construction and commissioning of Deflector, Doray is targeting combined annual production from Andy Well and Deflector of 150,000 to 160,000 gold equivalent oz at all-in sustaining costs of under A$1,000/oz.
At mid-October 2016, construction activity was well under way at Deflector, with most concrete footings completed. The first load of steelwork for the crushing circuit had arrived, and all pads for the site office, workshops and stores had been completed. Access roads were complete. The process water dam was in place and the liner was being installed.
Grade control drilling for the open pit was ongoing. A mining contractor will be appointed and mobilized to the site in January.
Doray acquired the Deflector project when it acquired Mutiny Gold in February.