How Did Evolution Mining Double Its Gold Resources to 30Moz in 2024?

Evolution Mining’s Resource Growth

Evolution Mining Limited (ASX, EVN) has released its annual Mineral Resources and Ore Reserves statement as of 31 December 2024, showcasing a portfolio that continues to expand in both scale and quality. The company now reports a total Mineral Resource inventory containing approximately 30 million ounces of gold and 4.4 million tonnes of copper. This represents a substantial increase from previous years, driven by successful drilling campaigns and resource optimisations, particularly at the Mungari, Ernest Henry, and Northparkes operations.

Ore Reserves, the economically mineable portion of these resources, stand at 11 million ounces of gold and 1.4 million tonnes of copper, supporting an average mine life of around 15 years. This longevity has more than doubled since Evolution’s inception in 2011, reflecting the company’s strategic focus on sustainable growth and value creation.

Asset Highlights and Challenges

The Mungari operation in Western Australia led the gold resource growth with an increase of 1.3 million ounces, supported by new drilling and updated economic assumptions. Ernest Henry in Queensland also contributed positively with a 0.4 million ounce gold increase and a 0.3 million tonne copper uplift, thanks to deeper and lateral drilling that enhanced confidence in the mineralisation. Northparkes, where Evolution holds an 80% stake, saw a 0.4 million ounce gold and 0.3 million tonne copper resource increase, reflecting the inclusion of ore reserves into the resource base as per reporting standards.

Conversely, the Red Lake operation in Ontario, Canada, experienced a significant reduction in gold resources and reserves; 4.5 million ounces and 0.8 million ounces respectively; due to a strategic shift toward higher confidence mining areas and increased cut-off grades. This adjustment aligns with Evolution’s focus on operational consistency and sustainable cash flow generation from Red Lake’s 15-year mine life. Mt Rawdon also saw minor depletion consistent with ongoing mining activities.

Economic and Operational Context

Evolution’s commodity price assumptions underpinning the resource and reserve estimates are conservative yet reflective of current market conditions, with gold prices set at $3,000 per ounce for resources and $2,500 per ounce for reserves, and copper prices at $12,500 and $11,500 per tonne respectively. These assumptions ensure that the reported figures are economically viable and resilient to market fluctuations.

The company’s operational plans are supported by detailed metallurgical studies, geotechnical assessments, and life-of-mine optimisations. For instance, Mungari’s processing plant expansion from 2.0 to 4.2 million tonnes per annum is underway, enhancing throughput and recovery rates. At Red Lake, a preliminary feasibility study into tailings retreatment has demonstrated economic viability, adding a new dimension to resource utilisation and environmental management.

Environmental and Social Governance

Evolution Mining maintains strong compliance with environmental regulations and social responsibilities across its operations. The company has secured all necessary permits and licenses, actively engages with indigenous communities such as the Lac Seul and Wabauskang First Nations at Red Lake, and implements robust environmental management systems. Tailings retreatment projects are designed to reduce closure liabilities and improve rehabilitation outcomes, reflecting Evolution’s commitment to sustainable mining practices.

Managing Director Lawrie Conway emphasised the quality and resilience of Evolution’s portfolio, highlighting ongoing drilling successes and the company’s ability to adapt strategies to maximise value while maintaining operational discipline.