Beaconsfield Gold moves to control mine

Beaconsfield Gold moves to control mine

Beaconsfield Gold says it has moved closer to gaining full control of its Tasmanian mine, which was the scene of a rock fall last April.

One miner was killed in the collapse and two others were trapped for a fortnight.

Beaconsfield Gold says it will buy a controlling stake in its joint-venture partner Allstate Exploration, which is in administration.

The company will also purchase several million dollars worth of Allstate’s debt.

The acquisition still needs the approval of Allstate’s minority shareholders.

Beaconsfield Gold chief executive Bill Colvin says it has the support of miners.

“I spoke to miners last week at a meeting,” he said.

“The overwhelming response there was … there were 93 votes in our favour and four against.

“So I think that’s a pretty clear indication that the work force is happy to see a change, and that was certainly borne out in my conversations with some of the guys after the meeting.”

Last November, miners started to remove waste rock, but they are yet to resume mining the ore body.

Mr Colvin says the mine could be back in operation within weeks.

“Within a matter of weeks we should be back to a position where we’re starting to produce gold,” he said.

Mr Colvin says the restructure will help ensure the mine’s future.

“Beaconsfield Gold is better financial state than its joint venture partner Allstate,” he said.

“We have the funding and shareholder support to raise funds if needed in order to see the mine safely reopen and get back into production.”

Share this post