STAWELL Gold Mines is close to returning to full production after it was sold to Melbourne-based Arete Capital Partners.
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Arete Capital Partners executive director Campbell Olsen said interests associated with Arete Capital had acquired 100 per cent of controlling interest in the Stawell assets from Canadian-based owner, Kirkland Lake Gold, for an undisclosed amount.
He confirmed the funds for the acquisition and ongoing activities were sourced from a private investment group based in Melbourne.
He also said the immediate work program would be to tap what he described as “a substantial pool of funds” to escalate the existing on-site exploration schedule to deliver feedstock to the mill.
The existing workforce, currently overseeing a care and maintenance program, will lead the push to revitalise the mine.
Kirkland Lake suspended operations last year, but has maintained the mill and underground works in basic operational condition.
“The clear intention is to return the Stawell Gold Mine to production by expanding and harnessing existing exploration programs in the region to identify new feedstock to the mill and therefore resume gold production,” Mr Olsen said.
In addressing the issue of mineralisation, Mr Olsen said the targets for new mill feed would focus on the underground eastern flank of the existing facilities as well as remnant underground mineralisation on the western flank.
“Both our targets for new mill feed are at depth – not at surface," he said.
“The broader Stawell region is a proven gold province. It has a rich heritage in exploration, discovery and production of gold, buoyed by a skilled and highly-experienced mining industry workforce, many of whom still live in the region.”
Northern Grampians Shire mayor Cr Tony Driscoll said council welcomed the investment and would work with the mine’s new owners to facilitate any further developments.
“Any investment in potential jobs and growth within the Northern Grampians Shire is a welcome investment as far as this council is concerned,” he said.
“We realise that the suspension of works at the mine in 2016 impacted upon many of our residents, and hopefully, this will provide much-needed expansion in terms of employment for our region.
“What this demonstrates is that Stawell, and the Northern Grampians Shire at large, is a prime location for investment, and council continues to work hard in order to attract new investors to our shire,” Cr Driscoll said.
Ripon MP Louise Staley also welcomed the news.
“I am very pleased,” she said.
“It will be marvellous indeed if the mine can return to production. Jobs for Stawell are vital and a skilled mining workforce still lives locally.”