Monto mine project building momentum
MELIOR Resources, the owner of the Goondicum Mine, has released a progress report to investors confirming activity at the site outside Monto is building momentum.
The mine is presently on-boarding construction and key long-term operational personnel, while supplies and equipment are ordered and administrative and other work procedures are finalised.
Roughly $10million in primary capital is budgeted to be spent on "restart activities” during the pre-production period.
Scheduled pre-production activities include repairs and maintenance, procuring critical spares, improving aspects of the previous process flowsheet, installation of additional processing circuits, construction of additional tailings storage capacity, and off-site infrastructure construction.
According to Melior, despite the tasks being relatively straightforward, as a cumulative project, detailed planning was required to ensure they were delivered on budget.
The pre-production project is expected to take a total of 21,661 man-hours and is currently 11per cent complete.
As of close of business last week, about 1700 hours of budgeted work had been completed in 609 man-hours - a saving of 1100 hours.
Melior Resources chief executive officer Mark McCauley said the work was running smoothly, with no safety or environmental incidents to report.
"We are off to a great start completing the construction work at Goondicum and remain on schedule and within budget,” he said.
"We anticipate that our target of commencing production in November will be realised.
"Ilmenite prices continue to be robust and market feedback suggests ongoing strength as we approach our start date.”
Critical to the construction period are the refurbishment and installation of the run-of- mine feeder unit, which is being transported from Western Australia, and the installation of the attritioning circuit and the spiral merge projects.
Both are reliant on the timely delivery of long-lead-time items from third-party vendors.
Construction is being carried out by Goondicum employees and external contractors, overseen by project manager Alastair Bauer, construction manager Gerry Finch and CFO Jonathan Mattiske.