Egyptian-owned La Mancha Resources yesterday moved to take full control of its Frog’s Leg gold mine after agreeing to purchase Alacer Gold’s 49 per cent stake in a $141 million deal.
La Mancha followed the acquisition late yesterday with confirmation a new $110m processing plant will be constructed at the underground mine, 20km west of Kalgoorlie-Boulder.
The miner’s rapid expansion – since being taken over by Cairo-based billionaire Naguib Sawiris last year – will also bring the White Foil open pit online, possibly as early as the December quarter.
The development will boost production from about 67,000ozpa to 150,000ozpa by 2014 and push La Mancha’s existing Goldfields workforce beyond 170.
Paris-based La Mancha chief executive Sebastien de Montessus said the mill was the key link in a strategy to increase Australian gold produc- tion four-fold to 500,000ozpa by 2016.
“It also has a huge impact on our profitability, as it will significantly decrease our Australian processing cost,” Mr de Montessus said.