Australian miner seeks to fix operational and cultural issues at Red Lake complex before investing in mill expansion
Evolution Mining executives want to see a better performance out of its Red Lake gold operation before it’s willing to invest on a processing mill expansion. In a recent webcall, Evolution’s CEO Lawrie Conway said when Red Lake consistently mines at a 1.1-million-tonne per year run rate, the Australian company will consider further spending to boost capacity at its milling facilities.
“Red Lake’s gotta earn the right to get the upgrade,” said Conway in an April 20 webcall with analysts to discuss Evolution’s March 2023 quarterly results.
Company management, ultimately, wants to hit the 1.8-million tonne mark per year. They think that’s achievable but first they need to consistently hit the 1.1-million tonne mark to deliver on their cash projections for the operation.
It’s just taken time to get things in place. When Evolution acquired the Red Lake gold complex from Newmont in 2020, they stated they were prepared to spend a lot of money on development and equipment to get the three-mine complex back to a premier cash-generating mining asset.