Coyote Gold Mine


The Coyote Gold Mine is a gold mine located in the remote Tanami Desert in the Kimberley Region of Western Australia. The mine, processing plant and camp are 17 km west of the Northern Territory border. The mine was closed in 2013 and placed on care and maintenance.
Coyote is located on the land of the Tjurabalan people, the traditional owners of the area. Tanami and the Tjurabalan people signed a native title agreement in 2005 in order to have a mining lease granted. This also included a commitment to employ a number of Tjurabalan people.

History

Serious exploration for resources, especially gold, was carried out in the region from early 2000 by a number of companies, specifically AngloGold, Newmont, Tanami Gold and Otter Gold Mines Limited. Some of the area of the Coyote mine was part of an exploration lease owned by AngloGold.
Tanami Gold acquired the tenement in November 2003 from AngloGold for A$14 million in cash and shares. AngloGold, in turn, had acquired it when it took over Acacia Resources in January 2000.
The mine was opened on 24 May 2006 by the Governor-General of Australia, Michael Jeffery, after a 12-year planning phase. It initially had a production target of 60,000 ounces per year.
In October 2006, Tanami had to temporarily suspend mining to cut costs as its treatment facility experienced difficulties in the commissioning. In late 2006, Tanami was in talks with Monarch Gold Mining in regards to a merger, but talks were later called off amid concerns that the treatment plant at Coyote would need further investment.
In January 2007, the Coyote Pit 2 was flooded in a major rain event. Mining was resumed in Pit 1 in April 2007.
With the financial crisis in 2008, Tanami had to borrow $7.7 million to continue its mining operation at Coyote.
In 2008-09, ore was mined in the Coyote Open Pit 1 and 2 as well as the Gonzales lode underground operation. Once the Coyote pit will be exhausted, which is scheduled for September 2009, two other open pits will be mined, the Kookaburra and Sandpiper pits.
On 23 April 2013, The West Australian reported the Coyote project was one of the State's highest-cost producers, pouring gold at basic costs of $1220/oz. The mine went into care and maintenance shortly after that retrenching 150 employees.

Production

Production of the mine:
QuarterProductionGradeCost per ounce
March 20072,981 ounces
June 20071,718 ounces
Total 2006-07
September 20076,051 ounces3.27 g/t
December 200711,779 ouncesA$ 709
March 20086,122 ounces3.38 g/tA$1,029
June 20085,799 ounces3.37 g/t
Total 2007-0829,751 ounces
September 20084,261 ounces5.8 g/t
December 20083,952 ounces2.9 g/t
March 20095,971 ounces6.1 g/t
June 20099,136 ounces6.0 g/t
Total 2008-0923,320 ounces5.1 g/t
September 200912,821 ounces5.5 g/tA$660
December 200911,783 ounces7.6 g/t
March 201010,456 ounces6.7 g/tA$672
June 201012,9007.5 g/tA$655
Total 2009-1047,960 ounces