Meeka tees up WA gold production leap with savvy plant tweak

Meeka Metals has kicked off a novel low-cost means of squeezing more gold out of its Murchison gold project near Meekatharra, saying it is preparing to install a wash plant, an additional crushing circuit and a Steinert multi-sensor ore sorter ahead of its main processing plant.

The company says it expects the ore sorting upgrade to free up 200,000 tonnes per annum of extra mill capacity, effectively lifting its nameplate throughput from 600,000 to 800,000 tonnes a year, while also boosting its plant head grade and annual gold production. 

Commissioning of the plant with the modifications and upgrades is targeted for the September 2026 quarter.

Ore sorting will initially be applied to high-grade material from Meeka’s Andy Well underground mine. The sorter will split underground material into a higher-grade stream for immediate processing and a lower-grade product to be stockpiled for later treatment.

Recent test work at Steinert’s Bibra Lake facility delivered a standout result, with 85 per cent of the contained gold sorted into 50 per cent of the rock mass – effectively doubling the grade of the Andy Well ore heading into the mill. 

Using a working example of 400,000 tonnes per year grading 3.8 grams per tonne (g/t) gold, Meeka says the sorting could yield 200,000 tonnes grading 6.5 g/t gold, containing 42,000 ounces.

The $6 million project will be funded from cash, with Meeka indicating a six-month timeline and a far smaller price tag than a conventional expansion of the crushing and grinding circuit would require. 

Importantly, the company expects its unit processing costs to hold steady at the higher throughput, in line with its DFS estimate of $38 per tonne, while also trimming plant wear and tear and reducing the volume of tailings deposited per ounce of gold produced.

Meeka Metals managing director Tim Davidson said: “We expect this high-return, quick-payback investment to be operational in the September 2026 quarter, providing additional processing capacity for ore from our open pits and our second underground mine at Turnberry, commencing in 2026.”

Most notably, by concentrating the gold into a smaller, higher-grade feed, Meeka says the sorter will also create space in the mill for additional ore from its open pits and from its planned second underground operation at Turnberry, with development due to start in 2026. 

Meeka says it assessed three pathways to address the current processing constraints before opting for ore sorting. However, it says other options to expand the crushing and grinding circuit further or construct a new, larger 2-3 million tonnes per year standalone processing plant remain available and continue to be evaluated.

The best part of the sorting option is that it is a simple bolt-on upgrade, expected to start paying for itself from the moment the start button is pressed.

If Meeka hits its September quarter commissioning target, investors may not have long to wait before they see what an extra 200,000 tonnes a year and an enhanced head grade can bring to Meeka’s Murchison project gold output.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au