Evolution Mining just greenlit a $55 million development that could transform Ontario’s Red Lake gold mine and unlock access to over 1.85 million ounces of high-grade gold. This bold move aims to bypass shaft limits and accelerate production at one of Canada’s richest gold deposits.
Evolution Mining’s board has approved the construction of a new surface decline, known as the Campbell Young Dickenson (CYD) decline, at Red Lake in Ontario, Canada. This comes years after Evolution acquired the Red Lake Complex from Newmont in November 2019 in a deal potentially worth $475 million. Initially, Evolution committed $100 million to the existing project and earmarked $50 million for exploration over three years following deal completion.
The CYD surface decline, costing between A$60 million and A$70 million (about $47 to $55 million), is designed to provide direct access to the Upper Campbell mine’s low-cost gold zones. This approach offers two additional mining fronts independent of the current shaft-constrained infrastructure, helping to scale production efficiently.
How Evolution Mining’s $55M Decline Will Unlock 1.85 Moz of Gold at Red Lake
The Red Lake mine boasts an average gold grade of 6.9 grams per tonne with a total reserve of 2.93 million ounces. The planned decline will open the Upper Campbell area, which alone holds 1.85 million ounces at an even richer 7.4 g/t grade. Additionally, Evolution plans to access the HG Young orebody, containing 427,000 ounces at 5.5 g/t, with promising potential to convert more resources into reserves through further drilling.
Evolution forecasts annual gold production from these new mining fronts to exceed one million tonnes. The initial “box cut” excavation is targeted for completion in the March 2021 quarter near the Campbell mill, with development starting in June 2021. The mine expects to process its first ore via the decline by the June 2022 quarter, with ongoing studies to maximize growth opportunities and timing to first ore production.
Why Evolution Mining’s Red Lake Update Signals a Low-Cost Gold Production Boost
As part of its first phase transformation plan at Red Lake, Evolution targets annual production exceeding 200,000 ounces per year at an all-in sustaining cost below $1,000 per ounce by 2023. The company has already decommissioned roughly 70 pieces of underground equipment and completed phase 1 of its “hoist automation project” to improve operational efficiency.
On February 17, Jake Klein, Evolution’s Executive Chairman, stated: “Red Lake has consistently exceeded our expectations. We are excited about today’s announcement of the 2.93 Moz gold JORC Code ore reserve and board approval of the decline production.”
He emphasized that the decline development is key to Evolution’s vision of reestablishing Red Lake as one of Canada’s premier gold mines, delivering sustainable annual output between 300,000 and 500,000 ounces of low-cost gold.
