Wedoany.com Report-Apr. 16, Evolution Mining has received board approval for the Open Pit Continuation project at its Cowal gold mine in New South Wales, Australia. The initiative will extend the mine’s operational life by ten years, with open pit production now projected to continue until 2042. The project involves a capital investment of approximately A$430 million ($273.4 million).

Evolution Mining approves $273.4m extension of Cowal gold operation to 2042.

The expansion, approved by the Australian federal government and the New South Wales Department of Planning, Housing and Infrastructure, includes further development of the E42 pit and the addition of three nearby satellite pits: E46, GR, and E41. The project is expected to yield 1.94 million ounces of gold, with an estimated internal rate of return of 34% at a gold price of A$3,300 per ounce. At current market prices, the return rises to 71%, reducing the payback period from 4.5 years to 1.5 years.

The underground operations at Cowal are set to achieve a production rate of 2.4 million tonnes per year by FY2026, accounting for roughly 30% of the mine’s feed and half of its gold output. The capital investment will be spread over seven years, consistent with prior estimates. To optimize costs, Evolution Mining acquired 11 low-hour second-hand haul trucks, saving approximately A$35 million ($22.26 million) compared to new equipment purchases.

For FY2025, major capital expenditure is projected to range between A$65 million ($41.3 million) and A$70 million ($44.5 million), covering fleet acquisition and infrastructure setup. An additional A$5 million ($3.2 million) will support mine development activities to enable full operations by July 2025. Since Evolution Mining acquired Cowal in 2015, the mine has generated over A$1.62 billion ($1.03 billion) in net cash flow, including A$479 million ($304.6 million) in the first nine months of FY2025.

“Cowal is undoubtedly a world class asset and a key asset in the Evolution portfolio,” said Lawrie Conway, managing director and CEO of Evolution Mining. “Today, the Board has approved the project which has compelling returns of 71% at current spot gold price and a short payback period. It will contribute to the goal of sustaining Cowal’s current production rate, while at the same time delivering significant economic benefits for all stakeholders.”

Ongoing exploration at Cowal focuses on identifying mineralisation to support further underground mining, particularly targeting higher-grade ore. The open pit expansion will facilitate the development of these underground opportunities. The project alignsMarketed as a strategic milestone, the Cowal extension strengthens Evolution Mining’s portfolio, which includes six operating sites: Cowal, Ernest Henry, Mt Rawdon, Mungari, Red Lake, and an 80% stake in Northparkes. For FY2025, the company maintains its production guidance of 710,000 to 780,000 ounces of gold and 70,000 to 80,000 tonnes of copper, with all-in sustaining costs between A$1,475 ($937.94) and A$1,575 ($1,001.53) per ounce.