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Evolution buying Newcrest copper-gold mine

AAP logoAAP 16/10/2016

Evolution Mining will pay rival Newcrest up to $10 million for the Marsden copper-gold project in central NSW.

Evolution says it will pay $3 million up front and another $7 million if it decides to press ahead with mining at the site, which it believes contains 1.1 million ounces of gold and 670,000 tonnes of copper.

"The Marsden project provides long-term optionality to our nearby Cowal operation and has the potential to further extend the life of what is already a long-life operation," Evolution executive chairman Jake Klein said in a statement on Monday.

Evolution's gold production for the September quarter was 205,307 ounces, down from 216,644 in the prior three months.

All-in costs were $1,060 an ounce, down from $1,117.

"While production is in line with our forecasts, costs are higher than both our estimates and the run rate for FY17," RBC Capital Markets mining analyst Paul Hissey said.

Evolution, which in September completed a $401.6 million entitlement offer, said it sold 205,858 ounces of gold at an average price of $1,708, compared to 226,558 at $A1,666 per ounce in the June quarter.

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