Mungana Underground Mine

LOCATION: NORTH QUEENSLAND STATUS: REHABILITATION DATE OF MINING: DEC 2016

History

The Mungana Mine site is situated 16kms west of Chillagoe, Far North Queensland. The Mungana Underground Mine was named after the adjacent ghost mining town of Mungana, which was first surveyed on 26th June 1901 to serve the nearby mines of Girofla, Lady Jane, Dorothy, Red Dome and Griffiths that operated intermittently from the late 1800s to 1926. Thereafter, various mining operations have taken place.

  • In 1986, Elders IXL Ltd developed an open cut mine over the old Red Dome workings, which ran until 1997, and produced about 1 million ounces of gold and 35,000 tonnes of copper.
  • In 1992, Nuigini Mining commenced drilling at Mungana to identify additional feedstock for Red Dome, culminating in a published open-pit reserve in 1994.
  • Following the closure of the Red Dome pit in 1997, Kagara Ltd continued exploration at Mungana.
  • In 2006, Karaga Ltd commenced underground development of the base metal deposit. During operations the mine was developed to a depth of 700 vertical metres, with 700,000 tonne of ore extracted grading 1.8%Cu, 1%Pb, 11.1%Zn, 1g/t Au and 80g/t Ag.
  • Site improvements made by Kagara Ltd included a modern site office complex, change rooms, workshop, mains power supply, ROM pad, and partially completed 600kt/annum processing facility and tailings dam.
  • In 2012, diminishing commodity prices and a high exchange rate saw Kagara Ltd enter administration during which time the Mungana Mine (and associated leases and assets) were sold to Atherton Resources Ltd (formally Mungana Gold Mines).
  • In 2015, Auctus Minerals (parent company to Auctus Resources) conducted a successful take-over of Atherton Resources with a view to re-establishing and expanding operations at the Mungana mine by transverse sublevel caving. Development is set to recommence in October 2016, and first production ore scheduled for January 2017.

Leading Geologist Professor Ian Plimer has deemed the Chillagoe region to have the most diverse geology in the world. 

Auctus Resources at Mungana Mine Site

Since acquiring the site in 2015, Auctus Resources has set and met several key milestones.

  • Recruitment of key management and technical staff.
  • Purchase and installation of a 300Kw submersible pump, currently dewatering the underground workings at a discharge rate of 85 l/s.
  • Purchase and installation of primary ventilation for the underground workings.
  • Independent geotechnical inspection of the first 1000m of dewatered mine workings - rock mass and previously installed ground support found to be in good condition and minimal rehabilitation required.
  • An Early Works Agreement has been awarded to Pybar Mining Services for rehabilitation of existing workings and first 900m of underground development to access stoping panels (set to mobilise to site in mid-September 2016).