Why the Grove is still a trove – 09 March 2017

Home / Views / Why the Grove is still a trove – 09 March 2017

It has been great this month to welcome Golden Grove back into the family.

The copper zinc gold deposit in WA (roughly 250km inland from Geraldton) has been acquired by EMR from MMG. The purchase was flagged late in December, but all the paperwork has now been completed, and the mine is now officially part of the EMR Group.

Golden Grove is an operation we know well: Oxiana, first bought it from Newmont back in 2005. We liked it then, but along with the OX’s other assets it was merged into the newly-created OZ Minerals in 2008 and later transferred into MMG.

Ten years ago, Golden Grove helped transform the OX from a fledgling copper and gold producer to a major Australia-Asia base and precious metals explorer, developer and producer.

It has had its ups and downs since that time, largely driven by fluctuating base metals prices, but at current and forecast prices it again looks good timing.

The process of valuing and assessing the operation’s potential was superbly done by EMR’s highly competent technical and corporate team, but some of my colleagues’ and my long history with the operation gave us considerable confidence in its capacity to supply the market profitably for many years yet.

Golden Grove is an excellent example of the EMR value-add model. We will look to increase volumes, lower competitive costs, expand resources and reserves in and around the existing orebodies, extend mine life significantly; and add value by looking at regional opportunities in this prolific WA base and precious metals belt.

It is a valuable addition to EMR’s growing portfolio.