Print Page icon

Toms Gully Underground Project

Primary Gold Limited

Primary Gold Limited proposes to recommission underground mining and expand operation at the Toms Gully Mine, located on the Old Mount Bundy pastoral station approximately 100 km southeast of Darwin.

The Northern Territory Environment Protection Authority (NT EPA) decided on 23 April 2014 that the Toms Gully Mine Project required assessment under the Environmental Assessment Act at the level of Environmental Impact Statement (EIS).

Terms of Reference to assist the Proponent in preparing the EIS for Toms Gully Underground Project were Issued on 19 November 2014.

The draft EIS underwent a six (6) week public exhibition period between period between 26 September and 6 November 2015. The NT EPA has directed the Proponent to conduct a revision of the EIS to take account of written comments received on the draft EIS, and produce the Supplement to the draft EIS.

The Proponent submitted a notice of an alteration to the proposed action on 8 June 2018. The NT EPA determined on 24 July 2018 that the alteration does not change the environmental significance of the proposal and that environmental assessment at the level of an EIS is still necessary.

Project Description

The Toms Gully mine is located on the Old Mount Bundy pastoral station located approximately 100 km southeast of Darwin and within Mining Lease MLN1058 owned and operated by Primary Gold Limited (“Primary Gold” or “the Company”).

The deposit was originally discovered in 1986 and between 1988 to 1991 was developed and operated as an open cut mine with an associated ore treatment plant. The project was subsequently operated intermittently by various owners before the underground mine was developed between 2005 to 2010. Primary Gold became involved in the Project in 2012 with a view to reopen the underground operation.

In August 2013, Primary completed a Feasibility Study for the Toms Gully underground mine and processing facility the outcomes of which supported a low capital and low cost return to gold mining and production and includes a maiden Probable Ore Reserve of 775,000 tonnes at 6.9g/t for 175,000 ounces of gold.

The Feasibility Study was managed by Primary Gold with major components being completed by prominent independent consultants, including Cube Consulting and Quantitative Group (mineral resource estimate), Golder Associates (ore reserve estimate), Independent Metallurgical Operations (metallurgy), and Como Engineering (Processing & Infrastructure). The Feasibility Study has delivered outcomes similar to the Company’s earlier scoping study (completed 2012) although with some changes which address unit cost of production by increasing throughput and includes an upgrade to the existing processing infrastructure aimed to coincide with the start of mine production. Other pre-production activities include dewatering of the current surface and underground workings.

Mining will be conducted entirely from existing underground access using a traditional ‘room-&- pillar’ technique and traditional processing of ore using carbon-in-leach with gravity circuit. At a rate of 350,000 tonnes per year the current mine life is 3 years however, the Company plans further exploration.

Rehabilitation of the site will be carried out on an ongoing basis as detailed in the current Mine Closure Plan. A workforce of approximately 100 people will be sourced predominantly from the nearby towns (e.g. Humpty Doo and Darwin) employed predominantly on a 5-day week basis.

Related Project Year
Quest 29 Gold 1999
Toms Gully Gold Project - Carpentaria Gold Pty Ltd (PDF 3.6 MB)