Fosterville
Dramatic Turnaround Efforts for Long-Term Success
The Fosterville Gold mine has a long history of mining; the operation is near Bendigo, a region estimated to have produced over 22 million ounces of gold following the first discoveries there in 1851.
Upon assuming control of the mine on February 19, 2008, Northgate initiated an ambitious four-point turnaround plan designed to dramatically improve productivity and safety performance at the mine.
The first and key component of the plan was the conversion from contractor mining to owner mining in order to give management better control over all aspects of the mining operation. This change in staffing strategy facilitated improved mining productivity and lower production costs.
The second component of the plan was investing in underground mine development in order to establish enough working stopes in the mine to supply the mill with ore at design levels. Underscored by the team's hard work and dedication, this work was completed by the end of September and set the stage for an all-time record production of 26,398 ounces of gold in the fourth quarter.
The third component of the plan was to improve gold recovery, which historically averaged 65%–75%. Northgate's focused efforts on improvements in this area resulted in an increase to 82% by the fourth quarter.
A new $4 million proprietary heated leach circuit, currently being commissioned at the mine, is expected to further improve recoveries to 90% when fully commissioned in the second quarter of 2009.
With significant improvements achieved at Fosterville, Northgate has now turned its attention to the final component of this turnaround strategy: to implement a Business Improvement Project thereby reducing operating costs at the mine by eliminating activities that are no longer necessary.
Looking into 2009 and beyond, Fosterville is now equipped with a strong resource base, a dedicated workforce, a solid mine plan and an upgraded processing plant, which will all facilitate a record production profile going forward. Production in 2009 is projected to be a record 112,000 ounces of gold.
Northgate also discovered a new and exciting mineralized zone in 2008: Harrier Underground. This new zone is in close proximity to existing infrastructure. Significant drilling in this zone and on other mine lease targets is planned for 2009, with an initial drilling budget of $4.2 million. Northgate expects to determine its production strategy at the Harrier Underground zone by mid-year.
The Fosterville mining lease offers many exciting exploration targets below the 21 separate past producing open pits on the property. With a fully commissioned sulphide plant achieving high recoveries, these targets should keep the Fosterville camp going for the foreseeable future.
The Fosterville mine is situated 20 kilometres (km) east of Bendigo, a township of approximately 100,000 people. Bendigo is approximately 150 km north of Melbourne.
112,000
ounces of gold projected in 2009
$4.2 million
exploration budget in support of reserve expansion