Crater restarts operation

Bird of Paradise in the Crater Mountain WMA

Bird of Paradise in the Crater Mountain Wildlife Management Area

Esmarie Swanepoel | Mining Weekly

ASX-listed Crater Gold Mining has resumed mining operations at the High Grade Zone mine, at its Crater Mountain operation, in Papua New Guinea (PNG).

The company was ordered to cease mining activities in late December, pending the conclusion of a PNG Mines and Safety Inspectorate inquiry into the circumstances surrounding a November vehicle accident, which claimed the life of the driver.

Earlier this month, the PNG issued a notice of relaxation of the cessation order, allowing Crater Gold to restart operations.

The junior said on Wednesday that drive development has now restarted on three gold bearing veins within the High Grade Zone delineated from previous underground development and diamond drilling, carried out in 2014.

Additional drives would also be started before the end of the month, increasing the number of headings being developed to around seven, thereby improving flexibility.

Initial production of gravity concentrates would be smelted and sold into PNG.

At full capacity, the Crater Mountain operation would produce some 10 000 oz of gold in its first full year of operation, at an all-in cash cost of around A$400/oz over its five-year mine life.

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Filed under Financial returns, Papua New Guinea

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