Red Lakes set for Transformation Phase I, with CYD Decline Approval by Company’s Board

The transformation plans of Evolution Mining at the Red Lake gold mine in Ontario, Canada, are seemingly ahead of their schedule as the company’s board signed off the development of a surface decline at the site.
In November 2019, Red Lake Complex was acquired by Evolution Mining from Newmont in a deal that could gradually amount to $475 million. At the time of the agreement, it was decided that around $100 million shall be invested in the existing project, while $50 million will be spent on the exploration of Red Lake over a period of three years post completion of all transactions.
The Campbell Young Dickenson (CYD) decline has been named in honor of three early Red Lake Deposit developers.
As per the company, the surface decline, which is estimated to cost A$60-A$70 million ($47-55 million), may provide a near-term opportunity to access additional low-cost ounces at Red Lake’s Upper Campbell mine with two additional mining fronts, independent of the present shaft-constrained infrastructure.
Red Lake currently houses an average grade of 6.9 g/t gold in a total reserve of 2.93 Moz. The decline will facilitate access to the mine’s Upper Campbell area, which further has reserves of 1.85 Moz at 7.4 g/t Au average grade. They are also planning to install access to the HG Young orebody, which has a resource of 427,000 oz at 5.5 g/t Au with the potential of conversion to reserves through additional drilling.
It is anticipated that annual gold production rates from these additional mining fronts will surpass 1 Mt. The box cut is scheduled for completion in the March 2021 quarter and will be situated near the Campbell mill. Post this, the commencement of development activities is slated for the June 2021 quarter, and the first ore shall be completed in June 2022 quarter. Studies are underway to analyze growth possibilities and ultimate access to first ore, the firm said.
The first phase transformation plan of Red Lake the firm seeks to reinforce the production of over 200,000 oz/y at an all-in sustaining expense of less than $1,000/oz by 2023. As part of this initiative, about 70 pieces of underground equipment have already been decommissioned, and among other aspects, the “hoist automation project” phase 1 has already been completed.
On February 17, Jake Klein, Evolution’s Executive Chairman, said: “In almost every respect, Red Lake has consistently exceeded our expectations. We are delighted about the continued progress we are making on this operation, especially with today’s announcement of the 2.93 Moz gold JORC Code ore reserve along with board approval for the decline production.”
“This commitment is an essential means to fulfill Evolution’s vision of restoring Red Lake to be one of the leading gold mines in Canada with a sustainable annual production of 300,000-500,000 oz of low-cost gold per year.”