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Earthquake damages West Australian gold mine

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Northern Star Resources’ Raleigh underground mine has been damaged following an earthquake last week.

Five days ago a magnitude 4.6 earthquake struck Western Australia’s Eastern Goldfields region, just outside of Kalgoorlie.

According to Northern Star “following the earthquake in the Kalgoorlie region on 26 February, some damage was incurred at the Raleigh underground mine”.

“Production at the Raleigh mine will be temporarily disrupted for around six to eight weeks in order to rectify the situation, which may delay 3000 to 5000 ounces of gold production this year,” Northern Star said in a company statement.

However, it stressed that its Rubicon and Hornet mines were unaffected by the tremors.

The earthquake also forced the evacuation of the Frog’s Leg and Homestead underground mines as well, according to The West.

Northern Star’s announcement came on the back of Northern Star’s acquisition of the Kundana and Kanowna Belle gold mines from Barrick Gold, with the miner taking control of them from 1 March.

At the time of the acquisition Northern Star's managing director Bill Beament said the deal placed the company as one of Australia’s major gold miners with the potential to produce 350 000 ounces of gold per year.

"The East Kundana JV acquisition makes Northern Star a major Australian gold miner that will appeal very strongly to major global investors," he said.

"The transaction ensures that Northern Star meets the demands of domestic and international investors with respect to critical mass, multiple operations, low costs, consistent dividends and strong growth prospects."


Image: Flickr - Railways of Australia

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