Karari

The Karari open pit gold mine has had a chequered life, having been originally owned by the ill-fated Sons of Gwalia mining company that sold it to St Barbara in 2005. Later in the same year St Barbara placed it on care and maintenance, a status it remained in until Saracen Mineral Holdings Limited purchased the whole Carosue Dam Project, that included the Karari Mine, in 2006.

Mine in Close Proximity to Processing Plant

Sons of Gwalia had mined the Karara pit is many stages during its tenure over a four year period. In fact the Karari open pit mine was the reason why Sons of Gwalia proceeded with the all important Carosue gold processing plant at the site in 1999. The gold processing mill is situated half a kilometre north of the Karari pit. The ore from the Karari Mine is taken directly to the processing plant in haulage trucks.

Gold Production at the Karari Mine Justifies Faith in the Project

The Karari mine produced 4.7 million tonnes of ore containing 1.8 grams a tonne of gold, a total of 278 thousand ounces, during its four year lifetime with Saracen Mineral Holdings Limited. An underground scoping study was carried out in 2012 to determine the viability of developing an underground mine at the Karari Mine. This study followed a new cut back taking place at the mine in 2011 focused on developing the southern end of the pit. Another cut-back to the east was evaluated last year (2012) to determine its development viability.

The Karari gold mine is fortunate in being sited in close proximity to the gold processing plant as this gives confidence for further expansion works. The condition of the previously excavated pit walls suggests good ground conditions for mining and the potential to add significant tonnes to future production.

Mine Acquired With a two Stage Plan in Mind

When Saracen took over the ownership of the Karari gold mine it formulated a two stage plan to facilitate its re-opening in 2010. It was decided that the open pit mine would continue for the next three to five years and this would be followed with an underground mine being developed. It was also decided that the mine would become part of the Western Power grid with the building of a 90 kilometre power line in preference to using the on site diesel generators. The line was estimated to cost the company between $10 and $15 million dollars but it would eventually save between $50 and $100 an ounce of gold produced at the site from then on. Saracen completed all their development work in November 2009 with the re-furbished mine being re-commissioned. Gold production began again, with the first gold pouring taking place on January 29, 2010.

Saracen Mineral Holdings Limited's Carosue Dam Project, that includes the Karari gold mine at South Laverton, 120 kilometres north of Kalgoorlie, includes, approximately, 200 applications and tenements covering an area of 2,500 square kilometres. The Carosue Dam Project itself includes the 2.4 million tonnes a year processing plant, mine workers accommodation village and other surface infrastructure. Its assets stand at more three million ounces of gold in resource and 825,000 ounces of gold in reserve.