Nov 29, 2016

Chillagoe mining projects set for new year start-up

Chillagoe mining projects set for new year start-up Auctus Resources expects to bring the King Vol zinc project into production in the third quarter of 2017.

Auctus Resources is set to award its principal mining contract in January as it gears up to start production from the Mungana and King Vol projects near Chillagoe in far north Queensland.

GR Engineering Services is completing a rebuild of the Mungana concentrator, with work on schedule for the plant to be processing at full capacity by early April, according to Auctus Resources executive chairman Steve Murdoch.

Auctus is hiring, particularly for roles related to the processing plant operations and maintenance, as it prepares to enter production mode from early 2017.

The private company, backed by Denham Capital, is investing about $100 million to bring the operations online after securing the former Kagara assets in a takeover of Atherton Resources in late 2015.

“The Mungana mine has been dewatered, the decline has been rehabilitated and we’re progressing the development heading across the ore body,” Mr Murdoch said.

The decline at the mothballed Mungana mine has been rehabilitated, ready to resume production in early 2017.

He expected to start mining the polymetallic ore body in early January.

At the greenfield King Vol zinc site, a portal has been completed and contractors are expected to start developing the decline in January.

Pybar mining contractors have been carrying out the early work.

Mr Murdoch said Auctus Resources was close to awarding a five-year mining contract for operations across the Mungana and King Vol sites.

He expected King Vol to be in production around August/September next year.

Mr Murdoch said about 170-200 people were working on the Chillagoe project at the moment, with the workforce expected to reach about 240 in production.

The management team lives locally and Mr Murdoch said the bulk of the Auctus Resources permanent workforce for the project was drawn from the Cairns-Chillagoe area.

“The big focus now is on populating the processing plant,” he said.

For more information on jobs available at the Auctus Chillagoe project visit http://www.auctusresources.com.au/careers/

The accommodation village for Auctus Resources’ Chillagoe project.