The Carnegie Gold Operation is an open-pit mining operation about 120 kilometres north-west of Kalgoorlie in WA, with an established mine and processing infrastructure. Historically, the Carnegie gold field, comprising the Riverina, Mulline, Davyhurst, Siberia, Lady Ida and Kunanalling project areas, has produced more than 1.5 million ounces of gold since 1897.
Carnegie has resources of 1.5moz at 2.3 grams per tonne of gold including 21,000oz measured, 786,000oz indicated and 695,000oz inferred and probable reserves of 135,874oz at 2.7g/t of gold.
The project lies in the prolific Carnegie-Mt Ida Greenstone Belt which hosts two major geological structures, the Zuleika Shear and the Mt Ida Fault. It is closely associated with gold mineralisation in the region, controlling a 10Moz endowment. Former local drilling went to 50 metres in known deposits.
The Carnegie processing plant is an upgraded conventional 1.2 million tonnes per annum carbon in pulp gold processing plant, that is in good condition and can be easily brought back on line with the re-establishment of power connection, at minimal expense.
The Carnegie site also includes well established administration and maintenance buildings, extensive spares inventory, established bore field, licensed tailings storage facility and a 100-person camp.
In June 2010 Swan Gold Mining announced plans to recommence operations at the Carnegie Gold Operation and to re-list on the ASX the following month. According to the announcement, the company had faced a number of challenges in the recapitalization process.
In June 2011 Swan Gold Mining successfully negotiated with global commodity company DCM DECOmetal GmbH for its nominee to acquire Swan Gold’s subsidiaries that own the Carnegie and Mt Ida gold projects.