Western Australia Progresses Toward Another 'Super Pit'

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Researched by Industrial Info Resources (Perth, Australia)--Founded in 1893 during the Yilgarn Goldrush, Kalgoorlie, also known as Kalgoorlie-Boulder, is a resource-rich region of Western Australia. Located approximately 595 kilometres east of Perth, the state's capital, Kalgoorlie is home to a gold mine known as the "super pit." The pit measures 3.8 kilometres long and 1.5 kilometres wide, and is approximately 600 meters deep, making it the largest open pit gold mine in Australia.

Although the region is very well known for the gold deposits, exploration by MacPhersons Resource Limited (ASX:MRP) (Melbourne, Australia) has identified what is expected to become a silver "super pit."

Located only 10 kilometres from the gold super pit, Nimbus silver mine originally operated from 2003 to 2007, processing approximately 318,000 tonnes; however, due to commodity prices being relatively low during this time in comparison to operating costs, the mining operations ceased.

Re-evaluation of the commodity value has generated further interest in the mine and, based on pit optimization test work, the company proposes that there will be a single super pit of approximately 900-meter length by 500-meter width, and 205-meter depth. As with previous mining and processing works, the project will continue to be a standalone operation.

"The ongoing metallurgical optimisation studies support the development of a silver concentrate, which will be processed on-site to yield silver-gold dore bars," Managing Director Morrie Goodz said.

Due to the enormity of the proposed operations, the project will most likely be completed in phases. During the initial phase, work will include a mix of refurbished and new equipment. MacPhersons aims to progress through construction during 2013, and commissioning is expected in early to mid-2014. In November 2012, MacPhersons initiated the process by awarding the feasibility study to CPC Engineering, a Western Australian company. In early 2013, CPC was given the green light for the Leach Tank Circuit for the refurbishment works.

An enormous cost for companies throughout Australia is often related to the location and a reliance on diesel fuels to run generators to produce electricity. Fortunately, the Nimbus mine is situation in a position that a 5.5-kilometre, high-voltage electrical line could be constructed to connect the mine to the state's electricity grid.

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