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“We are disappointed to be recording an impairment at Mt Evolution completed its
Carlton,” Klein said. “We will be working hard over the next six acquisition of Red Lake in
months to optimise the future of the operation and to further early April and Klein said
understand the size and quality of the Crush Creek project.” the transition of ownership
Evolution is earning up to 70% of the privately held Crush Creek had been relatively smooth
project, about 30km south-east of Mt Carlton, by sole-funding $7 despite the official handover
million of exploration work until September 2021. Initial drilling from Newmont Corp occurring
began in April to confirm and expand the in-situ mineral inventory during the onset of the
at the Delta and BV7 prospects. COVID-19 pandemic.
Two diamond rigs were turning at Crush Creek at the time of Despite being a high-cost
print, with a RC rig to arrive later this quarter. Evolution said operation – forecast AISC
preliminary results were pointing to potential mine-life extensions for the June quarter alone is Jake Klein
for Mt Carlton, which is now one of only two foundation assets $2,100-2,300/oz – Red Lake
remaining in the company’s portfolio. will add considerable grunt to the company’s portfolio with
anticipated annual production of at least 200,000oz.
Since 2016, Evolution has divested Pajingo, Edna May and
now Cracow, which Klein conceded “didn’t fit into our portfolio “The team at Red Lake have been incredibly receptive to a new
anymore”. owner that is energised and engaged and willing to invest in the
exploration upside that the asset offers,” Klein said.
“Cracow was our shortest mine life asset, it has been a great
asset for Evolution, but it was getting shorter mine life and we “It’s been an asset that has had some real challenges over the
just hadn’t been able to replace reserves over the last couple of last five years. Newmont were focused on other assets within the
years,” Klein said. non-core portfolio in the 12 months that they owned it, so to have
a new owner that is saying ‘well, we believe in a long-term future
“In my note I wrote to staff announcing the sale of the asset,
at Red Lake’ I think has been embraced by the team on site.
there was mixed emotion and there was somewhat of a heavy
heart. Cracow embodies so many of the great things the “The COVID pandemic has of course thrown a spanner in the
Australian mining industry offers; an energised, innovative and works with respect to visiting the site, but we have embraced
engaged workforce. They really are, I think, an embodiment of virtual technology and that’s worked really well.
the Australian mining industry and they have done a great job of “We’ve said it will be a three-year turnaround, but since we’ve
managing Cracow over the last nine years. done the due diligence, through the integration of the new
“We are sad to see it go but do feel it is better hosted in a ownership, the excitement we have on that asset has been
smaller company. Aeris is talking about spending $30 million amplified and our view and optimism about the future has
of exploration money on Cracow over the next few years and increased.”
While not included in Evolution’s overall group guidance for
FY2020, June quarter production from Red Lake is expected to
be around 25,000oz at an AISC of $2,100-2,300/oz.
At the time of print, Evolution was also set to wrap the biggest
annual exploration programme in its history with upwards of
$100 million spent on discovery activities across the portfolio.
“I think the discovery strategy of Evolution is probably something
that is less well known and something that Glen Masterman
who joined us three years ago [as vice-president, discovery and
business development] deserves a lot of credit for,” Klein said.
“He put it in place and motivated to the board at the time that one
of the missing pieces of Evolution was that discovery strategy
and that it needed to build a team, it needed funding and it
The acquisition of Red Lake in Canada will add at least needed some patience. Three years later, I think what you’re
“ We’re mining something “The highlights for us, of course, are the discovery and expansion
200,000 ozpa to Evolution’s gold production portfolio
seeing is some of the success and fruits of that strategy.
of the GRE46-Dalwhinnie lode at Cowal which we are confident
will allow us to take Cowal to a plus-300,000 ozpa producer as
that is the only currency
that underground gets developed. We’ve also had a discovery at
Mungari where we’ve intersected this Boomer deposit which we
that cannot be printed.
as the discovery version of a ‘Hackathon’, or as Glen likes to call
it an ‘Explorathon’.
it just wouldn’t have competed for those sorts of dollars and only drilled a few months ago. It came out of what we describe
allocation of capital in our portfolio which has, of course, now “It’s definitely been that missing piece, it’s taken some time, but I
been upgraded. We’ll look to spend money at Red Lake and think Evolution will become better known for discovery and it will
Cowal which are long life and larger assets.” certainly add value to our company.”

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