Develop spells out vision for 'amazing ore body' at Woodlawn Mine

The lead, copper and zinc mine, 40km south of Goulburn near Tarago, had produced almost 14 million tonnes of ore during operations from 1978 to 1998.

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"Historically this an amazing ore body," the Develop managing director said.

"It was the second highest zinc equivalent mine back then and while there isn't one running now, it's an incredible geological system. We have to find more and that's what we'll do in our exploration phase."

His one-year old company bought the mine from Heron Resources in February for $30 million, plus $70m in "success-driven milestone payments."

Heron had tried to resurrect mining after securing state government approval in 2016 to extract 1.5 million tonnes annually of zinc, copper and lead ore concentrates.

But the company hit financial difficulties and went into voluntary administration in July, 2021. The mine has been in care and maintenance mode since 2020.

Western Australia-based Develop acquired the operation under a deed of company arrangement, which paid out $8.5m to unsecured creditors.

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Mr Beament, a mining engineer with years of experience, said Woodlawn was an "amazing asset," not least for Heron's $340m investment in infrastructure. This includes a concentrate shed, crushing circuit, regrind mill and processing plant.

But Mr Beament says there's "massive untapped and untested" potential in the mine. His company is planning an aggressive underground drilling program, starting in one month.

On Tuesday, he hosted a group of fund managers, analysts and investors at the site. He said Woodlawn had 7.3 million tonnes in underground resource but the company estimated up to 80 per cent of material had been "left behind" by past operations. The total inventory is forecast to be 22 million tonnes.

It predicts significant potential for discovery of additional underground lenses and in abandoned operations nearby at Cowley Hills and Currawang mines. The latter has been dubbed a "high priority."

Heron Resources forecast similar potential. But Mr Beament said delays in underground mining, cost over-runs, "inadequate working capital," a court battle and COVID contributed to their demise. He told The Post he would have a very different strategy, which would not include mining of the tailings dams.

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Develop, which also has the Sulphur Springs mine in Western Australia's Pilbara region, expects to outlay $23m for the mine's care, maintenance and exploration.

"It's a huge commitment for a company our size but to bring it back online is probably another $50m," he said.

"...I want this operationally ready in 18 months but whether we turn it on is subject to (the exploration data). If it doesn't stack up, we won't turn it on but we're pretty confident that we'll get some good results."

Already, up to 40 employees are onsite, including local contractors. If mining recommences, Mr Beament forecasts about 300 jobs, with as many as possible sourced from the district.

During his presentation, he said after growing up in Kalgoorlie and spending years in the industry, he believed mining companies must have a "social licence" to operate. This meant treating the community as stakeholders.

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Similarly, he's aiming to harness 100 per cent renewable energy for the operation, via agreements with the adjoining Veolia Eco-Precinct.

Develop has also taken over Heron's inherited responsibility to rehabilitate the tailings dams on its site.

At this stage Mr Beament predicts a seven to 10-year life for the mine.

"It's not a deep mine but it's a big system with a lot of metal. Our drilling will determine its life but I think it has a bigger future than (10 years)," he said.

"...My vision is pretty simple - to get it back up and running. This is the 14^th mine I've bought in my career. I don't buy them to shut them down but for their geological ability and to execute my operating plan after that."

Canberra man, Chris Taylor, who also has extensive industry experience, has been appointed mine manager.

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