Wiluna is going green with power contract extension
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Special Report: Wiluna is aligning itself with the growing movement towards lower greenhouse gas emissions with the extension of its power contract with Contract Power Group.
The extension is aimed at meeting the forward needs of the Stage 1 sulphide development project by providing 14.1 megawatt (MW) of power.
Included in the extension is a re-configuration of the power station to increase gas generation and the addition of a 2MW battery energy storage, which is expected to reduce overall diesel usage at the Wiluna gold mine.
Additionally, the extension also allows for the amortisation of costs over a longer period, which reduces Wiluna Mining’s (ASX:WMX) overall operating power charges while providing a solid base for a future mixed renewables power station for the Stage 2 development plan in 2023.
“We are excited by company efforts to strengthen its operations by generating electrical power with greater efficiency,” executive chairman Milan Jerkovic said.
“Our operational energy efficiency and renewable sources of power is consistent with initiatives worldwide and across the mining industry.
“There will also be a longer-term preference for the development of mines with lower emission intensities for greenhouse gases. Wiluna Mining plans are consistent with these trends.”
Wiluna will now focus on renewable power studies and options during 2021 and 2022 to assess the right mix of renewables, determine how best to integrate renewables into the total power delivery for an expanded operation, and optimise the decarbonisation of power generation with reliability and cost effectiveness.
This move will benefit from Contract’s expertise in efficient generation of electrical power and in decarbonisation by harnessing off-grid wind or solar power.
Wiluna is focused on the development of shallow, high-grade sulphide ore bodies early in the mine plan.
Under this three-year staged production plan, the company started producing gold ore last year at a rate of 60,000 ounces per year and expects to reach full production of 250,000 ounces per year by the 2024 financial year.
Exploration to support this goal has returned some outstanding results to date with recent drilling at the Essex zone returning high-grade intercepts of up to 0.37m grading 313 grams per tonne gold within a broader zone of 2.35m at 61.05g/t gold, while the Starlight zone intersected up to 2.17m at 9.45g/t gold and 5.04m at 6.09g/t gold.
This article was developed in collaboration with Wiluna Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.