Laneway Resources (LNY.AX) announced last month it has produced its first doré gold bar at the Lorena plant where the rock from the Agate Creek gold mine was processed. For now, the mining activities at the Agate Creek mine remain suspended as there has been some flooding in the area and mining activities will likely remain suspended until the end of the rainy season. The current suspension gives Laneway additional time to rethink its mining schedule as it plans to take out an additional 38,000 tonnes of rock (at 6.5 g/t gold) in the current mining campaign.

Since mining started in October, the company has been able to truck about 4,400 tonnes of rock from the mine to the mill and about 400 tonnes of high-grade ore as well as an additional 7,000 tonnes of lower grade rock remain on the stockpile at the mine awaiting transportation once the operations will resume. And the suspension of mining operations isn’t the only disappointing update. During the processing campaign where the Agate Creek ore was being processed, the Lorena mill broke down but this should be fixed any day now. This should result in the remaining 2,200 tonnes of rock being processed.


Disclosure: The author has no position in Laneway Resources. Please read our disclaimer.

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