Great Divide Mining (GDM) has delivered first gold pour at its Challenger gold mine in New South Wales, paving the way for commercial production to commence in the coming months.
GDM kicked off operations at Challenger in May, with the company having been appointed manager of the mine, processing plant and associated equipment following an agreement with Adelong Gold.
As per the binding farm-in agreement, GDM initially took a 15 per cent holding in Challenger Mines, Adelong Gold’s subsidiary, by spending $300,000 on exploration.
Now that first gold pour at Challenger’s processing plant has been achieved, GDM will increase its ownership to 51 per.
“GDM was formed to rapidly evolve into a cash-flow mining business, deriving revenues whilst conserving shareholder capital,” GDM chief executive officer Justin Haines said.
“In less than two years from IPO (initial public offering), we have demonstrated this commitment.”
GDM achieved gold production by using a gravity recovery process, which uses recycled water as the only additive to the milled ore without process chemicals, and is considered inexpensive.
The gravity process produced gold concentrate instead of gold dore bars, an option also considered less expensive and easier to produce.
“We have produced first gold and moved to majority owner of an operating gold mine and processing facility,” Haines said.
“Our focus for the next period is finalising works and ramping up to commercial scale production at Challenger.”
Specialist contractors and consultants are being mobilised to Challenger, with GDM’s plan for commercial production and resource definition and extension drilling to be finalised in coming weeks.
GDM previously stated that the processing plant is expected to need further reconfiguration and expansion to be suitable for commercial production.