Red Lake – Earning the right to grow
The Red Lake operation is an underground gold mine in north-western Ontario and is situated in one of the highest-grade Archean gold camps in Canada, on the traditional lands of the Wabauskang and Lac Seul First Nation. Acquired in April 2020, an operational transformation plan is underway to restore Red Lake to a premier Canadian gold mine with a 15+ year mine life targeting 200,000 ounces per annum and expansion once justified.
In FY23, Red Lake production increased to 120,840 ounces of gold at an AISC of $2,620 per ounce. Operating mine cash flow was $41.6 million, sustaining capital was $61.2 million and major capital was $189.1 million. A number of milestones were achieved at Red Lake in FY23, not with standing that production performance was below expectations, positioning the site for significant improvement into FY24.
Lateral development for both the June 2023 quarter and the full year was a record under Evolution ownership. Delivery of two jumbo drill rigs in January enabled full mechanical bolting at Cochenour and Upper Campbell, contributing to the planned upgrading of the mobile fleet during the year. In addition, the completion of the Red Lake workforce review, aligned to two of our values of “Excellence and Accountability” is supporting the delivery of our FY24 production guidance.
In FY24, Red Lake is guided to deliver approximately 170,000 ounces of gold (+/- 5%) at an AISC of $2,000 (+/- 5%) with production stronger in the second half of the year. Red Lake’s priority is to consistently deliver 1.1 million tonnes of ore per annum to fill the current mill capacity and deliver increased cash generation. When the operation demonstrates sustainable performance at this level and above, further investment in expanding milling capacity will be considered.