Great Divide Mining (GDM) is embarking on an ambitious journey to revive the Challenger gold mine in New South Wales (NSW), outlining a clear “pathway to production.” With a robust portfolio of 17 mining leases and an exploration license covering approximately 70 square kilometers, GDM is strategically positioning itself to address maintenance issues and prepare the site for a successful re-launch.
A Comprehensive Due Diligence Process
In January, GDM completed a thorough due diligence process that laid the groundwork for the decision to move forward with the development of the Challenger mine. This evaluation was crucial in assessing the mine’s potential, revealing a rich production history of over 800,000 ounces of gold, with mill feed averaging an impressive 150 grams per tonne (g/t). Such findings underscored the viability of the project and bolstered GDM’s confidence in its ability to become a near-term gold producer.
GDM’s CEO, Justin Haines, emphasized the importance of this phase, stating, “GDM has spent the last four months completing due diligence work and finalising definitive agreements, time which has been used to deliver a double bottom line.” This approach not only focused on accessing plant and equipment but also involved maintaining and restarting operations during the due diligence period, ensuring that the site is now in a fully operable state, pending minor modifications.
Strategic Agreements and Ownership Structure
In November 2024, GDM became the operator of the Challenger mine after securing a binding farm-in agreement with Adelong Gold, the majority owner. This agreement, finalized last week, allows GDM to earn a 15% stake in the Challenger project by investing $300,000 in exploration activities. Furthermore, GDM can increase its ownership to 51% upon reaching gold production, aligning the company’s interests with the successful operation of the mine.
Addressing Metallurgical Challenges
As GDM prepares to re-open the Challenger gold mine, addressing known metallurgical issues at the processing plant is a top priority. The company is committed to confirming the commercial viability of the mine process, which will be pivotal in moving forward. Optimizing the plant and mine operations will involve finalizing mine planning to enhance process flow, commencing open cut mining, and dewatering underground drilling.
Exploration and Future Prospects
In addition to operational improvements, GDM plans to conduct extensive exploration drilling across the Challenger tenure. This exploration is expected to uncover additional resources and further enhance the mine’s potential. The company’s proactive approach to resolving geological issues at various deposits will also play a critical role in ensuring a sustainable and profitable operation.
Conclusion
Great Divide Mining is poised to make significant strides in the gold mining sector with its plans to re-open the Challenger gold mine. By addressing maintenance issues, optimizing processes, and conducting thorough exploration, GDM is setting the stage for a successful return to production. As the company moves forward, stakeholders and investors alike will be keenly watching its progress, anticipating the revival of a mine with a storied history and promising future.
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