The Dargues Reef gold mine in New South Wales has been approved of by the state’s Planning Assessment Commission. Exploratory drilling will begin at the mine located in the Araluen Valley to the north west of Batemans Bay in the next two weeks time.
The construction of the mine is due to start in the beginning of 2012 said that Cortona Resources company which is developing the mine. They completed finished most of the pre-construction activities.
The company said that the Planning Assessment Commission had strict guidelines to be enforced. Peter Van Der Borgh, the Manging Director of Cortona Resources said that they covered a range of things to do with environment, noise, traffic, water monitoring, and the reporting of results, standard conditions you'd expect with an operation like this.
He added that they had designed something that they felt was environmentally sound. It was an underground mine with no waste storage on the surface, and no cyanide on site. He said that obviously as the process had developed and they had liaised with the community, they had built a number of additional measures into the project.
The survival of the company is based on the approval of this flagship project. The project mining operations have been delayed due to the change of government in New South Wales in the month of March. However the pre-development work was now over and they were ready to make the transition into a mining company.
They hope to generate about $160 million free cash flow in the first six years of the project’s life at the current gold prices. The company is excited about the fast rising gold prices and feels that they will be able to contribute significantly to government royalties and taxes.