Australia Securities Exchange-listed 29Metals has expanded underground mining contractor Byrnecut’s workload at its Murchison region zinc-copper operations in Western Australia with a four-year contract to mine at Gossan Valley.
Complementing the mature Gossan Hill and Scuddles mines at Golden Grove, Gossan Valley is expected to contribute about 4000 tonnes per annum of copper and 20,000tpa of zinc from its first full year of production in 2027 after mining gets underway in the second half of next year. Golden Grove last year produced 21,900t of copper and 56,700t of zinc.
Byrnecut has worked at Golden Grove since 2017 and has about 400 employees at the site.
29Metals’ 2024 feasibility study put a A$112 million development cost on Gossan Valley, while life-of-mine capex was budgeted at $230 million. The underground mine is expected to average 585,000tpa of ore production over an initial six-year plan.
About 7km south of Gossan Hill, Gossan Valley was found back in 2010 and is seen as part of the Golden Grove volcanogenic massive sulphide (VMS) system.
It represents a “third mining front” for the owner. 29Metals CEO James Palmer said in the company’s 2024 annual report: “Gossan Valley will provide production flexibility as an additional mining front, as well as ensuring a replacement, higher grade, ore source for our Scuddles ore. Being relatively shallow and open at depth, significant potential exists to further grow mineral resource estimates and extend the life of mine.”
The company completed a $180 million equity raising late last year to invest mainly at Golden Grove.
“After a competitive tender process we are pleased to be advancing the Gossan Valley project with Byrnecut who as the incumbent mining contractor at Gossan Hill and Scuddles enables opportunities for operational and commercial synergies across mining operations at Golden Grove,” Palmer said this week.
Privately-owned Byrnecut, one of the world’s largest underground hard-rock mining contractors, has current operations in Australia, Canada, Saudi Arabia and parts of Africa.
The WA-based company has more than 6000 employees.
