Metals X flags closure of Chalice
Metals X has flagged the closure of its Chalice underground mine near Norseman before the end of the year.
Boss Peter Cook told the Diggers & Dealers conference yesterday the expansion of the nearby Trident underground mine and new open pits would offset the lost production at the company's Higginsville operations.
Higginsville has produced 123,360 ounces of gold since Metals X took over in October as part of a $40 million deal with Alacer Gold.
The acquisitions have generated $84.7 million for Metals X.
"We've had a fair crack at trying to find extensions to that ore system in the last six months and haven't found any," Mr Cook said.
The majority of Metals X workers from Chalice will move to Trident or to the company's South Kalgoorlie operations where it is on track to begin mining at its HBJ underground mine this year.
HBJ is expected to produce 242,000oz over the next four years and create 100 jobs.
Australian Contract Mining is the likely frontrunner to take on the HBJ mine after its Chalice contract is finished.
"Alacer's David Quinlivan stood up at this conference last year and said someone should buy these assets because you can make $100 million of free cash in the next 12 months," Mr Cook said. "He was spot on. In fact we've made $85 million in the last nine months."
