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Evolution Mining warns of gold setback at Queensland mine

Australian gold miner Evolution has warned production costs at its Mt Carlton site in Queensland are set to surge more than 40 per cent after drilling discovered orebodies to be narrower than first thought, with forecast full-year gold production volumes also flagged to come in well below earlier estimates.

Evolution’s Mt Carlton had been forecast to produce 95,000 to 105,000 ounces in the year to June 30, but in an update to the market on Friday, the company revealed the mine’s forecast output had been slashed by 27 per cent to between 70,000 and 75,000 ounces for the full year, driving down the group’s overall gold production.

Evolution Mining's Cowal gold mine in NSW.

Evolution Mining’s Cowal gold mine in NSW. Credit:

The $6 billion gold miner said drilling in sections of the pit at the Mt Carlton mine had found the orebodies were narrower than expected, meaning the cost of mining the gold would increase from less than $850 an ounce to between $1150 and $1225 an ounce.

“Mt Carlton was scheduled to produce significantly higher ounces in the June 2020 quarter from the mining of thick, high-grade areas in the pit and underground,” Evolution said.

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