Join our daily newsletter At The Bell to receive exclusive market insights
Meeka Metals (ASX: MEK) has commenced significant expansion work on the Murchison gold project processing plant in Western Australia. The upgrade is set to add 200,000 tonnes per annum (tpa) of additional mill capacity, increasing throughput to approximately 800Ktpa of annual gold production
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
Initial work includes the installation of an additional crushing circuit, wash plant and Steinert multi-sensor ore sorter. MD, Tim Davidson, said the upgrade will also improve the removal of hard waste rock from the mill feed, along with reduced plant wear and lower tailings deposition per ounce produced.
He said ore sorting will effectively double the head grade of Andy Well ore entering the plant. “The test work results were excellent and gave us strong confidence in the ability to consistently separate the high-grade gold-bearing quartz from lower-grade material that will be stockpiled for later processing.”
“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, in 2026,” he added.
The ore facility will be installed ahead of the processing plant to sort Andy Well’s underground ore into two products: A higher-grade ore stream that feeds into the mill for immediate processing and a low-grade stockpile for a later date. The $6 million upgrade will be funded from existing reserves.
Civil works have started, with equipment delivery and installation planned for the June CY26 quarter. Commissioning of the ore sorter is targeted for the September quarter.
The Murchison project hosts a high-grade 1.2M ounce at 3g/t resource with both open-pit and underground mining operations feeding a central processing plant. Gold production commenced in July CY25, with operations ramping up.
The project’s definitive feasibility study identified a 10-year plan and strong economics, including peak annual production of 76,000 ounces, average annual production of 65K ounces over the first seven years, undiscounted pre-tax free cash flow of $1B, an NPV8% of $616 million, and an 180% IRR, at a A$4,100/oz gold price.
MEK is up +6.15% today, to 17.3cps.
Join the discussion: See what HotCopper users are saying about Meeka Metals Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
