Nolans processing plant with the new third grinding mill. (Photo: Resolute)

Resolute reported that Stage 1 of the Ravenswood Expansion Project (REP) has been completed at the Ravenswood gold mine in Queensland, Australia. Stage 1 of the REP included the recommissioning of the third grinding mill at the Nolans Processing Plant, which allows a return to a processing rate of 5 million metric tons per year (mt/y). The increased processing capacity will enable Resolute to achieve annual production of 80,000 ounces (oz) of gold at a reasonable cost.

Ravenswood is now producing positive cash flow for Resolute and that is expected to continue during the subsequent development phases of the REP.

“Increasing the plant capacity at Ravenswood to 5 million mt/y and using this capacity to beneficiate and process available low-grade stockpiles, delivers an immediately cashflow positive, profitable mining operation at Ravenswood,” said Resolute Managing Director and CEO John Welborn. “More importantly, it is a step toward the much larger production base that we believe is possible at Ravenswood. During 2020, the strategic review will evaluate the future capital demands of the full REP, contemplate the timing of an investment decision on Stage 2, and how best to maximize value for Resolute shareholders from this potential.”

A strategic review of the REP continues to provide strong encouragement that higher throughput and production rates provide the potential for Ravenswood to target approximately 200,000 oz/y of gold for 15 years from 2022.