Hanking Gold (03788) has announced the commencement of construction for the access road, a 258-person mining camp, and related supporting facilities at the Mt Bundy gold project site. This follows the approval of the project's mine management plan and the granting of the mine operation authorization, after meeting relevant conditions set by the Northern Territory government departments.
The Mt Bundy gold project is located approximately 100 kilometers southeast of Darwin in Australia's Northern Territory. The project currently holds a resource of 3.47 million ounces of gold and a reserve of 1.88 million ounces of gold, compliant with the JORC Code (2012 edition), all within existing mining license areas.
According to an updated final feasibility study, the project is expected to produce an average of 150,000 ounces of gold annually over the first 10 years of its initial 17-year mine life. The company aims to commence gold production in the first quarter of 2028, at which point the mine is projected to become the second-largest gold mine in the Northern Territory.
The construction phase is expected to create over 400 jobs and provide significant benefits to local contractors, suppliers, and service providers. The Board believes that initiating this construction further demonstrates the company's strategic commitment to advancing the Mt Bundy project towards production and establishing itself as a mid-tier gold producer.
Regarding the start of construction, Dr. Qiu Yumin, the company's Executive Director, CEO, and President, stated: "We are pleased to commence construction of the access road, mining camp, and related facilities for the Mt Bundy gold project after meeting the relevant commencement conditions. This marks another significant milestone in the project's development and is a crucial step towards transforming it into a long-life, high-profitability gold-producing mine. Since our initial investment in Primary Gold in 2014, and particularly after achieving full ownership in 2018, through continuous investment and technical studies, we have increased the project's gold reserves by more than tenfold and significantly optimized the overall development plan for the Mt Bundy project. We sincerely thank the Northern Territory government departments, professional consultants, contractors, and our team for their support in bringing the project to the physical construction stage."
"The successful development of the Mt Bundy gold project is expected to deliver substantial returns to our shareholders and regional stakeholders. In addition to creating over 400 jobs, the project is anticipated to make important contributions to the local economy through taxes, rates, rents, and royalties. We will continue to apply our professional capabilities to responsibly expand resources, reserves, and future production capacity, building a sustainably operated gold mine."
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