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Processing Deal Powers New Murchison’S Cash And Output Jump

ByArticle Source LogoAustralian Mining04-28-20262 min
Australian Mining
mining

New Murchison Gold has delivered a production uplift and strong cash generation for the March quarter after successfully accessing unused third-party processing capacity at Westgold Resources’ Bluebird Mill in Western Australia.

This follows a mutual agreement that enabled ore sales to exceed the ore purchase agreement (OPA) tonnage limit.

During the March quarter period, New Murchison sold 173,174 tonnes of ore above the 150,000-tonne maximum contemplated under the OPA after agreeing with Westgold to utilise available processing capacity.

The miner said the outcome in part to the softer nature of Crown Prince oxide ore, which supported flexible blending and steady mill performance.

“We are very pleased to report on our second full quarter of production and to demonstrate continued strong operational performance,” New Murchison Gold chief executive officer Alex Passmore said.

“The quarter saw consolidation of operations at Crown Prince and resulted in the generation of $63.6 million cash from sales of 173,174 tonnes of ore.”

Gold sales totalled 16,660 ounces at an average grade of 3.1 grams per tonne (g/t) gold, supported by efficient ore delivery and consistent throughput. Safety performance remained strong, with no lost time injuries or significant environmental incidents recorded during the period.

New Murchison Gold continues to explore across the Garden Gully project, with high-grade results at Crown Prince East and Lydia reinforcing the potential for near-mine growth and future production expansion.

“Exploration is continuing to build a great foundation for NMG’s development pipeline throughout our highly prospective Murchison gold fields tenement package,” Passmore said.

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