Vancouver – ATW Gold (ATW-V) has poured the first gold at its new underground Burnakura gold mine in Western Australia.
The operation comprises a 160,000-tonne-per-annum carbon in leach gold plant with contract underground mining providing ore carrying an average head grade of 8 grams gold per tonne. The operation is expected to produce 35,000 oz. gold each year.
The first gold pour, which took place on Mar. 27th, represented recovery from only a few days of production and was most important as a test of plant operation, capacity, and recovery. The plant is currently operating at 75% capacity to allow time for the leach circuit to charge fully; ATW plans to ramp it up to full capacity within 90 days.
Located in the West Yilgarn goldfields, the Burnakura project covers 12 km of prospective strike along a major shear zone hosting a mesothermal gold system. Historic production focused on lower grade surface oxides, which were mined from 15 open pits.
ATW acquired the project in late 2007 for A$4 million and 5 million shares. The property hosts 260,494 measured and indicated tonnes grading 7.74 grams gold as well as 142,684 inferred tonnes averaging 5.4 grams gold. The system remains open for expansion in all directions.
On the day ATW poured its first gold the company also announced a $4.5-million non-brokered private placement. The company is selling 7.3 million units at 62¢ each, with each unit comprising a share and half a warrant exercisable at 80¢ for one year. Sprott Asset Management is purchasing three-quarters of the units, investing just over $3.5 million in ATW.
And ATW is also awaiting the results of a preliminary assessment of its wholly-owned Deflector deposit at the Gullewa gold project, also in Western Australia. The study is expected in August.
On news of the first gold pour ATW shares gained 8¢ to close at 80¢. The company has a 52-week trading range of 25¢ to 89¢ and has 61 million shares outstanding, 92 million fully diluted.
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