Savannah Goldfields has obtained a critical Environmental Authority for its Agate Creek project, enabling mining to resume this quarter and targeting 36,800 ounces from Ore Reserves over two years.
- Updated Environmental Authority approved for Agate Creek mining lease
- Mining restart planned for Q3 2026 following early site works
- Ore Reserves total 460,000 tonnes at 2.5 g/t gold
- Mineral Resources offer long-term production potential of 422,000 ounces
- Environmental Enforcement Order on mining lease effectively closed out
Environmental Authority Unlocks Agate Creek Mining
Savannah Goldfields Limited (ASX:SVG) has cleared a major regulatory hurdle with the Queensland Department of Environment, Tourism, Science and Innovation granting an updated Environmental Authority (EA) for full-scale mining at its Agate Creek Gold Project. This approval, announced on 8 July 2026, paves the way for mining to recommence this quarter after a five-year environmental assessment process.
The EA covers Mining Lease ML100030 and includes conditions designed to balance efficient mining operations with protection of the nearby Rungalla National Park and local environment. Importantly, the approval also resolves a longstanding Environmental Enforcement Order on the lease, which had constrained activity pending compliance assurances.
Ore Reserves and Mineral Resources Define Production Horizon
Agate Creek’s Ore Reserves stand at 460,000 tonnes grading 2.5 grams per tonne gold, equating to roughly 36,800 ounces. Savannah plans to mine this reserve over the next two years, trucking the ore to its Georgetown Gold Processing Plant (GGPP) located 100 kilometres north. The GGPP is currently processing material from other sources like Big Ben and Big Reef, holding about 23 days of feedstock with grades near 1.95 g/t.
Beyond the Ore Reserves, the project boasts Mineral Resources of 15.49 million tonnes at 0.82 g/t gold, containing 422,000 ounces. This sizeable resource base offers potential for sustained production beyond the immediate mining schedule, contingent on future development decisions.
Preparations Underway for Mining Resumption
Early site works are progressing to facilitate a smooth mining restart. These include haul road upgrades, erosion and sediment controls, water management infrastructure, and refurbishment of camp facilities. The company awaits final approval of an updated rehabilitation cost estimate for Year 1 mining, a prerequisite for formally closing out the Environmental Enforcement Order and commencing full operations.
CEO Brad Sampson highlighted the significance of the EA approval, stating it enables Savannah to feed the Georgetown plant with a steady supply of ore from Agate Creek over the coming two years. The company also acknowledged the cooperative engagement with DETSI throughout the application process, underscoring a constructive regulatory relationship.
Processing Plant and Feedstock Outlook
The Georgetown plant is running at approximately 550 tonnes per day throughput, processing stockpiled ore from Big Ben and Big Reef deposits. Savannah is evaluating opportunities to expand feed from additional open pit sources and rock piles, which could complement the Agate Creek ore feed and optimise plant utilisation.
Bottom Line?
With the Environmental Authority secured, Savannah Goldfields is positioned to restart Agate Creek mining imminently, but the timing and financial impact of the rehabilitation cost approval remain key near-term variables.
Questions in the middle?
- When will the updated rehabilitation cost estimate be approved to fully unlock mining?
- How will feedstock blending between Agate Creek and existing sources impact gold production grades?
- What are the company’s plans for developing the substantial Mineral Resources beyond current Ore Reserves?