Metals & Minerals
Frog's Leg Gold Processing Plant in Western Australia Enters Final Commissioning
La Mancha Resources Limited is entering the final commissioning of a processing plant addition at its Frog's Leg gold mine near Kalgoorlie, Western Australia.
Released Friday, April 04, 2014
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Researched by Industrial Info Resources Australia (Perth, Australia)--La Mancha Resources Limited (TSX:LMA) is entering the final commissioning of a processing plant addition at its Frog's Leg gold mine near Kalgoorlie, Western Australia.
Also known as the Mungari Gold Project, it is located 20 kilometers from Kalgoorlie. The plant is designed to process ore from La Mancha's Frog's Leg and White Foil gold mines. The project involves construction of a 1.5 million-ton-per-year, carbon-in-leach gold processing plant, and supporting infrastructure, with a total capital expenditure of $110 million. La Mancha has a toll treatment agreement with Metals X Limited (ASX:MLX) for the ore treatment through its South Kalgoorlie operations, which will be terminated when the processing plant becomes fully operational.
La Mancha Resources awarded a $90 million comprehensive engineering, procurement and construction (EPC) contract to Sedgman Limited (ASX:SDM) in early 2013. Sedgman served as the design engineering consultant and oversaw the definitive feasibility study (DFS) and the front-end engineering design (FEED) phases of the project in mid-2012, before being appointed the EPC contractor.
La Mancha acquired the Frog's Leg and White Foil gold mines in 2006 and 2007, respectively, and the first gold pour and commercial production was in early 2009. The Frog's Leg gold mine had a historical gold production rate of an estimated 65,000 ounces of gold per year in 2012. Both gold deposits hold substantial potential for further exploration, and La Mancha Resource's own gold processing facility paved the way for future expansion.
The company currently has three exploration projects in the early development phase in Western Australia and expects to advance them in coming years. The construction of the Frog's Leg gold processing plant has taken 12 months, and La Mancha expects the official opening and first ore processing by the end of April.
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