Australian gold miner Evolution Mining on Tuesday approved a A$430-million expansion of its flagship Cowal gold operation in New South Wales, extending the openpit mine’s life to 2042 and unlocking an additional two-million ounces of production.
The board sanctioned the Cowal Open Pit Continuation (OPC) project after receiving regulatory approvals from the Australian federal government and the NSW Department of Planning, Housing and Infrastructure. Evolution said the project would generate an internal rate of return (IRR) of 71% at current spot gold prices, or 34% assuming a gold price of A$3 300/oz.
“Cowal is undoubtedly a world class asset and a key asset in the Evolution portfolio,” said MD and CEO Lawrie Conway. “The operation has fully repaid the acquisition cost and subsequent investment with a 17-year mine life remaining.”
The project extends openpit operations by a decade through continued mining at the E42 pit and development of three new satellite pits — E46, GR and E41 — located around the main deposit. It will also support the growth of Cowal’s underground mine, which is expected to ramp up to 2.4-million tonnes a year by the 2026 financial year and contribute about 30% of mill feed and 50% of total gold output.
“Today, the board has approved the project which has compelling returns of 71% at current spot gold price and a short payback period,” Conway said. “It will contribute to the goal of sustaining Cowal’s current production rate, while at the same time delivering significant economic benefits for all stakeholders.”
Total project capital will be spread over the next seven years, consistent with prior guidance. For the 2025 financial year, Evolution has earmarked between A$65-million and A$70-million for fleet purchases and establishment capital, and about A$5-million for development work ahead of the project’s scheduled July 2025 start.
Evolution has capitalised on current market conditions by acquiring 11 low-hour second-hand haul trucks, resulting in cost savings of about A$35-million versus new equipment.
Cowal has been a cornerstone of Evolution’s portfolio since its acquisition in 2015, generating more than A$1.62-billion in net mine cash flow, including A$479-million in the first nine months of the financial year alone. The company expects the operation to remain a significant cash contributor throughout the OPC project execution phase.
“The project represents a major milestone for Cowal, unlocking the potential for further sustained growth, enhanced shareholder returns, and the opportunity to leave a lasting positive impact for our stakeholders and the communities in which we operate,” Conway added. 