Navarre Minerals gains approval for Queensland open pit gold-silver-copper mine

Navarre Minerals (ASX: NML) has received final regulatory approval from the Queensland Government for open pit mining at the Mt Carlton United (MCU) gold-silver-copper deposit, located 4km from the company’s processing plant.

First ore is expected to be delivered to the mill in December.

The company says the approval is a “significant milestone” as this was the last hurdle to be crossed before mining could begin immediately.

Resource drilling in the first half of this year has increased the resource at MCU to 1.1 million tonnes grading at 3.41 grams per tonne gold equivalent, for a contained 121,000oz of gold equivalent.

New source of higher-grade gold

Higher grade material will lift the company’s production in the second half of the 2023 financial year which, along with cost estimates, will meet Navarre’s guidance for that period.

MCU is one of five potential satellite open pit deposits identified within the Mt Carlton mine tenement package purchased a year ago from Evolution Mining (ASX: EVN).

Navarre managing director Ian Holland said MCU is expected to contribute to a strong production and cashflow forecast for the second half of 2023 and into the 2024 financial year.

“MCU offers a new source of higher-grade gold, together with significant silver and copper by-products to supplement existing production from the V2 open pit,” he added.

Still big focus on Victoria gold projects

This development comes just one week after Navarre reported its resource inventory had reached 1Moz in gold equivalent.

The company’s Queensland project now accounts for 740,000oz of gold equivalent, while the Stawell Corridor project in Victoria 304,000oz of gold equivalent.

Mt Carlton is located 130km south of Townsville.

As part of the Mt Carlton purchase agreement in October 2021, Evolution became a significant shareholder in the Stawell-based Navarre. The deal also included Evolution’s Crush Creek gold deposit, 30km from Mt Carlton, acquired in 2020.

While Mt Carlton has dominated Navarre’s new flow of late, the Victorian ground covered by its Stawell Corridor gold project remains a substantial potential gold operation.

That project lies within the 6Moz Stawell historical gold field and the 1Moz Ararat gold field.

Navarre is also searching for high-grade gold at its St Arnaud project where recent drilling has identified mineralisation beneath and adjacent to of historic mine workings which produced 400,000oz.