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Millennium Minerals Transition To Gold Producer At Nullagine Remains On Schedule

Millennium Minerals (ASX: MOY) is on track to begin the commissioning of the gold process plant at its Nullagine Gold Project in Western Australia in the September quarter of 2012.

Construction of the plant is on schedule and within the capital cost estimate of $87.6 million as of the end of March.

The structural steelwork fabrication is nearing completion with first deliveries to the site having begun in early March.

The plate-work fabrication is also nearing completion with the run of mine bin delivery due at the end of April.

SAG mill concrete plinth foundations are due to be poured this month in readiness for the erection of the SAG mill in early May.

The structural, mechanical and plate-work contract began early March and is well underway with steel erection started in the crushed ore reclaim tunnel, the thickener, the gold room and the crusher areas.

The two remaining key contracts, piping and electrical supply and installation, have been awarded and are due to begin shortly.

Millennium is planning to source the material for the establishment of the run of mine pad, tailings storage facility and haul roads from the proposed Golden Eagle pit area.

The company has mobilised a 40 tonne articulated fleet and a larger 100 tonne fleet to undertake the proposed works.

Western Plant Hire have been contracted to supply and maintain the fleets.

Initial clearing, grubbing and topsoil stockpiling, as well as haul road construction began in early April.

Grade control drilling also began in early April and is expected to be completed by the end of the month.

Production expansion

Last month Millennium secured A$16.6 million in funding to allow the company to assess a medium term production expansion at Nullagine, which already hosts a Reserve of 741,000 gold ounces.

Millennium estimates that the optimal scale of the Nullagine operations most likely falls within a rate of between 2 and 3 million tonnes annually, which is much higher than the current 1.5 million tonne annual capacity.

The production base target will be 100,000 gold ounces annually over a mine life of eight years or better.

The Nullagine Gold Project hosts 1.33 million gold ounces contained within seven deposits on granted mining leases. Golden Eagle is the biggest deposit, hosting almost two thirds of the resource.