Dallaglio ramps up gold output

CLOUDINE MATOLA

Padenga Holdings Limited’s mining subsidiary, Dallaglio Investments, has boosted gold production on the back of intensified exploration efforts and critical equipment upgrades, Business Times can report.

Company secretary, Andrew Lorimer, said that new machinery and exploration initiatives—particularly at the Eureka and Pickstone mines—have begun delivering tangible operational improvements.

“The pre-leach thickener installed at Eureka Mine is delivering positive results in terms of reduced reagent usage, water efficiency and gains in plant recovery,” Lorimer said. “New mining equipment delivered to the site during the quarter will lead to more efficient mining going forward.”

He added that drilling and exploration targets at the Pickstone operation had not only been met but exceeded during the review period, while underground operations remained on course with expectations.

“At Pickstone Underground Mine, the grade attained for the quarter under review was in line with forecast which is positive and encouraging,” Lorimer said. “Exploration diamond drilling progressed well at Pickstone with 7,016 metres drilled against a forecast 3,979 metres. The results which are now being assessed will increase confidence in the resource and add to the life of mine.”

Gold output in the first quarter of 2025 rose by 1.6% to 620 kilograms, up from 610 kilograms in Q1 2024. Key production metrics such as grade and recovery also registered moderate improvements over the same period.

Despite the rise in production, gold sales during the quarter stood at 620 kilograms, representing an 18% decline from Q1 2024. The company attributed this to the unusually high volume of gold inventory from 2023, which had been sold during the same period last year.

Looking to the future, Dallaglio is advancing Phase 3 of the underground mining project at Pickstone and preparing for additional drilling and infrastructure upgrades.

“Phase 3 of the Underground Project at Pickstone is progressing well, with the planned date to establish hoisting from Level 10.5 targeted for December 2025,” Lorimer said.

At the same time, the company is exploring the potential for underground operations at Eureka, backed by an ongoing feasibility assessment and processing upgrades.

“At Eureka Mine, the main focus is on the first phase of exploration and evaluation drilling which will inform feasibility of an underground operation,” he said. “Management is also currently evaluating the prospects of upgrading the gravity circuit at Eureka Mine, for implementation by the end Q3 of 2025.”

With international gold prices expected to remain elevated through the rest of the year, Dallaglio is positioning itself to take full advantage of favorable market conditions through improved efficiencies, stronger resource confidence, and expanded underground operations.