South Kalgoorlie Gold Mine

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South Kalgoorlie
South Kalgoorlie Gold Mine is located in Australia
South Kalgoorlie Gold Mine
South Kalgoorlie Gold Mine
Location in Australia
Location Kalgoorlie
State Western Australia
Country Australia
Coordinates 31°03′S 121°59′E / 31.050°S 121.983°E / -31.050; 121.983Coordinates: 31°03′S 121°59′E / 31.050°S 121.983°E / -31.050; 121.983
Production 34,766
Financial year 2008-09
Opened 1987
Company Avoca Resources Limited
Website Avoca website
Year of acquisition 2010

The South Kalgoorlie Gold Mine is a gold mine located south-west of Kalgoorlie, Western Australia. The mine is sometimes also referred to as South Kal Mines - New Celebration, being a merger of the former New Celebration Gold Mine and the Jubilee Gold Mine, which were combined in 2002.[1][2]

It was operated by Dioro Exploration NL, who purchased the mine from South Kal Mines Pty Ltd in December 2007,[3] until April 2010, when Avoca succeeded in its bid for Dioro and Dioro was delisted from the ASX.[4]

Dioro had been the subject of a takeover war between Avoca Resources Limited and Ramelius Resources from mid-2009 onwards.[5][6] Avoca eventually had to drop its bid for Dioro,[7] having reached a 44.85% interest in Dioro at the close of the offer on 20 August, short of the 50% needed.[8] Ramelius's offer for the company closed on 8 February 2010. Avoca made a renewed takeover offer for the company in late December 2009.[9]



Originally owned by Hampton Australia, the mine was taken over by Normandy Mining in January 1994. It was then owned by Normandy until April 1996, when it was acquired by New Hampton Goldfields Limited, which, in turn, was taken over by Harmony Gold in April 2001 for A$54 million.[10][11][12]

New Celebration[edit]

Originally owned by Newmont Australia Ltd, the mine became part of Newcrest Mining Ltd in April 1991. New Celebration became a subsidiary of Hill 50 Gold in August 2001, when Newcrest sold the mine for A$10 million.[13]

Harmony announced a take over bid for Hill 50 Gold Limited in December 2001 and compulsory acquired outstanding Hill 50 shares and listed options in April 2002, after achieving a 99% interest in the company.[14] Harmony paid A$233 million for this acquisition.[15]

South Kal[edit]

Harmony merged the New Celebration and the Jubilee operations to form South Kal in 2002.[12]

South Kal became part of Harmony's Australian operations, consisting of Hill 50, the Hill 50 Gold Mine, the Big Bell Gold Mine (closed June 2003) and the Gidgee Gold Mine (sold in December 2003).

In December 2007, Harmony in turn sold the operation to Dioro Exploration NL.[3]

Dioro settled the purchase of the mine on 30 November 2007. Harmony Gold received A$45 million for the operations, of which $25 million were in cash while the remainder was paid in Dioro shares.[16]

Dioro suffered a number of set-backs at its South Kal mine, when, on two occasions, major pit wall collapses interrupted mining. These events, in October 2008 at the Mt Marion pit and in January 2009 at the HBJ pit, made access to high-grade ore temporarily impossible and affected operational cash flow for more than six months.[17]

Ore from the South Kalgoorlie mine is processed at the nearby Dioro-owned Jubilee Mill, commissioned in 1987,[17] which also processes ore from the Frog's Leg Gold Mine, which Dioro owns 49% of.[18] The former New Celebration plant, which functioned as the processing facility for the mine, was sold to Integra Mining in May 2006 for A$3 million.[1] Integra removed the processing plant by May 2008, to use it at its new Randalls Gold Mine.[2]

The South Kal operation, together with Dioro's 49% stake in the Frog's Leg mine were part of a takeover war between Avoca Resources and Ramelius Resources. Avoca, owner of the Higginsville Gold Mine and Ramelius, owner of the Wattle Dam Gold Mine, both in the area south of Kalgoorlie, were both interested in acquiring Dioro to combine their existing operations with Dioro's.[19][20] After a failed bid by Avoca in August 2009 and a subsequent extension to the bid by Ramelius, Avoca made a new offer for Dioro on 29 December 2009, despite having earlier declared that its August bid was final.[21]

Gold mines in the Kalgoorlie region


Production figures for the mine:

New Celebration[edit]

Year Gold
Grade Cost per ounce
2000 [22] 74,311 ounces 4.0 g/t A$370
2001 [22] 80,556 ounces 4.25 g/t
2002 3 [22] 74,883 ounces 3.68 g/t A$365


Year Gold
Grade Cost per ounce
2000 [12] 90,362 ounces 2.8 g/t A$413

South Kal[edit]

Year 1 2 Gold
Grade Cost per ounce
2003 [23] 509,654 ounces 2.22 g/t
2004 [24] 338,272 ounces 2.2 g/t US$326
2005 [24] 296,848 ounces 2.5 g/t US$338
2006 [25] 231,517 ounces 2.33 g/t US$419
2007 [25] 224,797 ounces 2.36 g/t US$513
2007-08 [26] 41,973 ounces 1.99 g/t
2008-09 [17] 34,766 ounces 1.5 g/t
  • 1 2007-08 figures are for Dioro ownership only, compromising the time from 1 December 2007 to 31 August 2008. Dioro's financial year runs from 1 September to 31 August.
  • 2 Result for Harmony's combined Australian operations, consisting of South Kalgoorlie, the Hill 50 Gold Mine, the Big Bell Gold Mine (closed June 2003) and the Gidgee Gold Mine (sold in December 2003).
  • 3 Figures for January to September 2002 only.



  1. ^ a b Gold Process Plant Acquisition Integra ASX announcement, published: 15 May 2006, accessed: 20 January 2010
  2. ^ a b Integra`s Gold Processing Plant Dismantled Integra ASX announcement, published: 29 May 2008, accessed: 20 January 2010
  3. ^ a b MINEDEX website - South Kal Mines - New Celebration result
  4. ^ Removal from Official List Dioro ASX announcement, published: 21 April 2010, accessed: 7 May 2010
  5. ^ Response to Dioro’s 8th Supplementary Target’s Statement Avoca Resources announcement, published: 17 August 2009, accessed: 6 September 2009
  6. ^ Ramelius shares rise on strong gold results, published: 10 August 2009, accessed: 6 September 2009
  7. ^ Avoca's bid for Dioro beaten by Ramelius offer, published: 30 July 2009, accessed: 6 September 2009
  8. ^ Avoca reaches 44.85% at close of Offer for Dioro Avoca Resources announcement, published: 17 August 2009, accessed: 6 September 2009
  9. ^ NOTICE OF INTENTION TO MAKE A NEW TAKEOVER OFFER FROM AVOCA AND UPDATE ON RAMELIUS’S AMENDED OFFER Dioro ASX announcement, published: 4 January 2010, accessed: 6 January 2010
  10. ^ MINEDEX website - Junilee search result accessed: 7 February 2010
  11. ^ Copy of letter dispatch to HNG Shareholders by Harmony Gold New Hampton ASX announcement, published: 8 January 2001, accessed: 6 February 2010
  12. ^ a b c The Australian Mines Handbook: 2003-2004 Edition, page: 96
  13. ^ Acquisition of New Celebration Gold Mine Hill 50 ASX announcement, published: 29 June 2001, accessed: 19 January 2010
  14. ^ Harmony to proceed to compulsory acquisition Hill 50 ASX announcement, published: 17 April 2002, accessed: 19 January 2010
  15. ^ The Australian Mines Handbook: 2003-2004 Edition, page: 467, accessed: 18 January 2010
  16. ^ Dioro to settle with Harmony on A$45M acquisition of Kalgoorlie gold assets Dioro ASX announcement, published: 3 December 2007, accessed: 6 January 2010
  17. ^ a b c Annual report 2008-09 Dioro ASX announcement, published: 27 November 2009, accessed: 6 January 2010
  18. ^ Quarterly Report for the period ending 31 August Dioro ASX announcement, published: 31 September 2009, accessed: 6 January 2010
  19. ^ Dioro out of touch, says Avoca Resources The Australian, published: 17 June 2009, accessed: 6 January 2010
  20. ^ Avoca opens offer for gold miner Dioro The Sydney Morning Herald, published: 19 May 2009, accessed: 6 January 2010
  21. ^ Avoca increase bid for Dioro Exploration, published: 29 December 2009, accessed: 6 January 2010
  22. ^ a b c The Australian Mines Handbook: 2003-2004 Edition, page: 116
  23. ^ Harmony annual report 2003 accessed: 20 January 2010
  24. ^ a b Harmony annual report 2005 accessed: 19 January 2010
  25. ^ a b Harmony annual report 2007 accessed: 6 January 2010
  26. ^ Annual report 2007-08 Dioro ASX announcement, published: 28 November 2008, accessed: 6 January 2010

External links[edit]