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05/09 - Unity Mining to keep cyanide vow despite processing hicup

Unity Mining has given an assurance it will not use cyanide to process ore from its underground goldmine at Majors Creek, east of Canberra.

Unity Mining's plans to truck ore for processing to Parkes in central NSW may not proceed after a challenge lodged about a year ago in the NSW Land and Environment Court remains unresolved.

Parkes Shire Council had approved processing up to 50,000 tonnes a year of material from Majors Creek at the London Victoria gold mine.

The project was expected to create 12 jobs and contribute $3.8 million to the Parkes economy.

A spokesman for Parkes Shire said the matter was still before the court, after Agriculture Equity Investments challenged the approval.

A Unity Mining spokesman said the Parkes option may no longer be possible.

''But there are options, one of which is to take [the ore] back to Bendigo and process it through an existing plant which Unity already owns.

''The final processing isn't resolved, except it certainly won't be done at Majors Creek.

''The approvals were issued on the basis that no cyanide processing took place. It's very clear cut, there's no plan whatsoever.''

Ore would be crushed at Dargues goldmine, then taken elsewhere.

Work began in February on the goldmine and an access road and box cut entrance are nearing completion.
Unity Mining has told the Australian Stock Exchange it does not expect production to start until the first half of the 2015 financial year.

In the statement, the company said it was considering using components of the gold processing plant at Bendigo, where the mine is no longer operating, at Dargues goldmine, or selling them and using proceeds to help develop the Dargues mine.

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