Tuesday, June 30, 2009

ATW Gold’s Burnakura Gold Mine Surpasses 5,000 Ounces Gold Production

by Sam Kiri company news image

On the heels of the recently closed US$10 million loan and Production Marketing agreement with Red Kite Exploration Fund Limited, Canadian Venture listed ATW Gold Corp (TSX.V: ATW) has completed the commissioning phase and achieved commercial production at its wholly owned Burnakura Gold Mine in Western Australia. By the end of last week, the total recovered gold ounces from Burnakura have surpassed the 5,000 ounce mark. Accordingly, effective June 1, 2009, the Company will begin reporting quarterly financial results of operations from the Burnakura Mine.

Located in the West Yilgarn goldfields of Western Australia, the Burnakura Gold Mine consists of 58.8 square km of mining leases and prospecting licenses, a fully permitted 160,000 tonne per annum (440 tpd) CIL gold plant, rolling stock, underground equipment, workshops, office space and a 90 man camp.  The project covers 12km of prospective strike length along a major auriferous shear zone and mesothermal gold system. 

Better things are in store of ATW. Burnakara is well on its way to reach the first targeted commercial level of 36,000 ounces annually and plans are underway to expand the output to 50,000 ounces of gold per annum. ATW has already contracted Simulus Consultants of Perth, Australia, to complete a plant optimization, which began on June 10, 2009. Simulus is a specialist process engineering consultancy with particular expertise in mine process simulation. With a portfolio of some 70 clients in 21 countries, Simulus is listed as a Fast100 Business in the 2007 Australia's top 100 growing businesses list and was awarded Australian Best Small Business of the Year in 2006.

In addition to Burnakura, ATW has Gullewa goldmine 300km south west Burnakura Gold Mine. The Project includes a total of 756 km2 of mineral tenements that cover the prospective central and southern portions of the Gullewa Greenstone Belt and include the Gullewa Mining Centre, the Deflector Deposit, the Prince George Mine, the Michaelangelo and Monarch Prospects. Mining infrastructure assets of Gullewa include a turn-key gold operation with a Carbon-In-Leach plant capable of up to 300,000 tpa (tonne per annum) gold production, a licensed tailings disposal facility, a 50-person camp, offices, workshops, bore fields and haulage roads. The site is currently on care and maintenance.

Brent Butler, President and CEO, expressed his satisfaction with the speed at which the ramp-up to commercial production at Burnakura was achieved. Butler also confirmed their efforts to maximize recoveries, output and throughput, in an attempt to achieve the increased rate of 50,000 gold ounces per annum this year. With some $10 million available after the recent financing ATW is well poised to finance this programme.

http://www.proactiveinvestors.com/companies/news/1776/atw-golds-burnakura-gold-mine-surpasses-5000-ounces-gold-production-1776.html