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Davyhurst Gold Mine

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Coordinates: 30°02′11″S 120°40′14″E / 30.03639°S 120.67056°E / -30.03639; 120.67056
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Davyhurst
Location
Davyhurst Gold Mine is located in Western Australia
Davyhurst Gold Mine
Davyhurst Gold Mine
Location in Western Australia
LocationMenzies
StateWestern Australia
CountryAustralia
Coordinates30°02′11″S 120°40′14″E / 30.03639°S 120.67056°E / -30.03639; 120.67056
Production
ProductsGold
Production48,023 troy ounces[1]
Financial year2022–23
History
Opened2001
Active2001–2008
2017–2018
2021–present
Owner
CompanyOra Banda Mining
Websiteorabandamining.com.au
Year of acquisition2005
Map

The Davyhurst Gold Mine is a gold mine located 53 km south-west of Menzies, near Davyhurst.[2]

The mine was formerly owned by Monarch Gold Mining Company Ltd, and went on care and maintenance shortly before Monarch went into administration in June 2008.[3] The mine resumed operation in early 2021, now owned by Ora Banda Mining, a successor of Monarch Gold.

Historical production for the mine was 230,000 ounces of gold prior to the 1950s, a further 428,000 ounces between 1980 and 2000 and 152,690 ounces in the mining phase between 2000 and 2008.[4]

History

[edit]
Gold mines in the Kalgoorlie - Leonora region

A first treatment plant at Davyhurst was built by WMC Resources in 1986 and sold on in the following year. After intermittent attempts to mine the area by a number of companies, Cons Gold purchased the mine in 1996, moved the treatment from the Bardoc Gold Mine to Davyhurst, and commenced mining. Cons Gold appointed an administrator in April 1998 and the mine was inherited by N M Rothschild & Sons. Rothschild continued processing until April 1999.[5]

The deposit was purchased in mid-2000 by Croesus Mining NL from Rothschild. Croesus made Davyhurst the first new gold mine to open in Western Australia in the new century.[6]

Within less than a year of acquiring the mine, Croesus moved from exploration to mining and opened Giles open pit operation in May 2001.[6] From 2001 until the mine closed in October 2005, it had produced 387,000 ounces of gold, while historical production for the area since 1897 was 1.15 million ounces.[7]

In November 2005, Croesus sold the mine to the Monarch Gold Mining Company for A$5 million.[2][8] In June 2006, Croesus Mining went into voluntary administration.[9]

Monarch recommenced mining at Davyhurst in June 2007 and announced its first gold pour in the following August.[10]

The Davyhurst mine was placed in care and maintenance once more on 14 June because of continued underperformance while its second operation, the Mount Ida Gold Mine, remained in production.[11] Michael Kiernan was appointed as managing director of Monarch and resigned as chairman of Territory Resources, the main creditor of Monarch, on 24 June.[12]

Monarch appointed Pitcher Partners as voluntary administrators on 10 July 2008. Two of Monarch's directors, Michael Kiernan[13] and Allan Quadrio, had already taken Croesus, the previous mine owner, into administration two years earlier.[3][9][14]

In June 2009, Stirling Resources Limited, under managing director Michael Kiernan, announced to inject funds into Monarch Gold.[3] Stirling announced, it would cover all of Monarch's debt, A$55 million and intended to return both the Mount Ida Gold Mine and Davyhurst into operation, the later within three-month of the take over. Mount Ida is scheduled to produce 48,000 ounces of gold per annum at A$450 an ounce, while Davyhurst would produce 65,000 ounces at A$850. Stirling would rename Monarch to Swan Gold Mining Limited.[15] The proposal was accepted by Monarch's creditors on 1 July 2009.

Stirling experienced considerable delays in their fund raising and had to request for extensions on the deadline for the recapitalisation of Monarch, first to 31 December 2009 and then to 31 January 2010.[16]

If reopened, the mine would be part of Swan's Carnegie Gold Project, alongside the nearby Riverina Gold Project, Mulline Project, Siberia and Lady Ida.[17] The new owners, Swan Gold Mining, announced plans to reopen Davyhurst in May 2010 and Mt Ida in October of the same year.[18]

Swan Gold Mining was renamed to Eastern Goldfields Limited in December 2015 and Ora Banda Mining in June 2019.[19] Eastern Goldfields Limited had to enter voluntary administration in late 2018 after the collapse of a A$75 million recapitalisation plan. A subsequent rescue plan saw the company raise A$22 million in early 2019. It was later reveled that the company was in danger of insolvency as far back as August 2017, when operations at Davyhurst resumed for a brief period.[20][21]

Ora Banda Mining refurbished the Davyhurst process plant, camp and power station in 2020, which it completed in early 2021. Following completion, surface and underground mining at Davyhurst and processing of ore commenced.[22][23][24] Ore at the mine is processed from the local Golden Eagle underground operation as well as the Riverina and Missouri open pits, the former located 45km north of the process plant, the latter located 40km south-east.[25]

Production

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Production of the mine:

Croesus

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Annual production of the mine under Croesus:[6]

Year Production Grade Cost per ounce
2001 61,471 ounces 2.5 g/t A$328
2002 91,852 ounces 2.47 g/t
2003 110,621 ounces 3.06 g/t
2004 84,570 ounces 2.58 g/t

Monarch

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Quarterly production of the mine under Monarch:[26]

Quarter Production Grade Cost per ounce
Third Quarter 2007 4,085 ounces 1.19 g/t
Fourth Quarter 2007 7,276 ounces 1.29 g/t
First Quarter 2008 7,031 ounces 1.3 g/t
Second Quarter 2008

Ora Banda Mining

[edit]

Annual production of the mine under Ora Banda Mining (including under the name of Eastern Goldfields Limited):[27][22][28][1]

Year Production Grade Cost per ounce
2008–2017 in care and maintenance
2017–18 15,232 ounces 1.4 g/t
2018–2021 in care and maintenance
2020–21 14,726 ounces 1.7 g/t
2021–22 61,654 ounces 2.0 g/t
2023–23 48,023 ounces 1.5 g/t

See also

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References

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  1. ^ a b "Ora Banda Mining Annual Report 2023". orabandamining.com.au. Ora Banda Mining. Retrieved 26 February 2024.
  2. ^ a b MINEDEX website - Davyhurst search result accessed: 15 January 2010 Archived 11 September 2008 at the Wayback Machine
  3. ^ a b c MONARCH GOLD MINING COMPANY LIMITED (MON) delisted.com.au, accessed: 15 January 2010
  4. ^ "Central Davyhurst Project". orabandamining.com.au. Ora Banda Mining. Retrieved 25 April 2022.
  5. ^ DAVYHURST OFFICIAL MINE OPENING MAY 11TH, 2001 by: Ron Manners, Chairman of Croesus Mining, accessed: 15 January 2010
  6. ^ a b c The Australian Mines Handbook: 2003–2004 Edition, page: 80–81, accessed: 15 January 2010
  7. ^ Purchase of Davyhurst gold project ASX announcement, published 8 November 2005, accessed: 15 January 2010
  8. ^ Croesus sells Davyhurst mine to Monarch The Age, published: 8 November 2005, accessed: 15 January 2010
  9. ^ a b CROESUS MINING NL (CRS) delisted.com.au, accessed: 15 January 2010
  10. ^ Monarch 2007 annual report ASX announcement, published 15 October 2007, accessed: 15 January 2010
  11. ^ Davyhurst and Mt Ida Operations Update ASX announcement, published 16 June 2008, accessed: 15 January 2010
  12. ^ Michael Kiernan vows to save gold miner Monarch perthnow.com.au, published 24 June 2008, accessed: 15 January 2010
  13. ^ Kiernan empire continues to bemuse crikey.com.au, published: 27 October 2009, accessed: 15 January 2010
  14. ^ Changes to Board of Directors ASX announcement, published 16 March 2006, accessed: 15 January 2010
  15. ^ SRE: Offer to Recap Monarch to take it out of administration ASX announcement, published 23 June 2009, accessed: 15 January 2010
  16. ^ Deed Administrator's Update to Shareholders ASX announcement, published 23 December 2009, accessed: 15 January 2010
  17. ^ Carnegie Gold Project Archived 27 July 2010 at the Wayback Machine Swan Gold website, accessed: 18 January 2010
  18. ^ Swan to commence mining in May Swan Gold ASX announcement, published: 25 March 2010, accessed: 25 April 2010
  19. ^ "EASTERN GOLDFIELDS LIMITED (EGS)". www.investogain.com.au. Retrieved 25 April 2022.
  20. ^ Zhou, Vanessa (29 November 2018). "Eastern Goldfields signals voluntary administration". Australian Mining. Retrieved 25 April 2022.
  21. ^ Milne, Peter (2 February 2019). "Creditors back Eastern Goldfields' $22m rescue plan". The West Australian. Perth. Retrieved 25 April 2022.
  22. ^ a b "Ora Banda Mining Annual Report 2021". orabandamining.com.au. Ora Banda Mining. Retrieved 25 April 2022.
  23. ^ Zhou, Vanessa (30 June 2020). "Mothballed Davyhurst to resume gold production in 2021". Australian Mining. Retrieved 25 April 2022.
  24. ^ Birney, Matt (28 July 2021). "Ora Banda sells $25 million of Davyhurst gold for June quarter". The West Australian. Perth. Retrieved 25 April 2022.
  25. ^ Birney, Matt (3 September 2021). "Gold production on the up and up for Ora Banda". The West Australian. Perth. Retrieved 25 April 2022.
  26. ^ Quarterly Activities and Cashflow Report ASX announcement, published 31 October 2007, accessed: 15 January 2010
  27. ^ "Eastern Goldfields Limited Annual Report 2018". orabandamining.com.au. Ora Banda Mining. Retrieved 25 April 2022.
  28. ^ "Ora Banda Mining Annual Report 2022". orabandamining.com.au. Ora Banda Mining. Retrieved 1 March 2023.

Bibliography

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  • Louthean, Ross (ed.). The Australian Mines Handbook: 2003-2004 Edition. Louthean Media Pty Ltd.
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