Laneway Resources has started a $2.5 million works program to bring the Georgetown gold processing plant back online in North Queensland.

The refurbishment and restart program is expected to take about 12 weeks to complete, at which time Laneway says high-grade ore pre-stripped at its Agate Creek mine last year will be mined and ready for processing.

“We are pleased to be underway with the refurbishment and restart works at the Georgetown plant which,
once complete, will enable us to take control of our processing and development future and provide a clear
pathway for Laneway to execute on its significant growth pipeline,” managing director Brad Gordon said.

Laneway entered into a $17 million deal in in February to purchase Masterson Minerals, owner of the Georgetown gold processing plant and an extensive portfolio of regional mining and exploration tenements.

Site works and electrical and mechanical refurbishment programs at the processing plant have commenced.

The plant was previously fully refurbished in 2010 and has only been used briefly since then
including for the processing of a metallurgical sample for Laneway in early 2014 which achieved good gold
recoveries.

In addition, Laneway said re-establishment of associated site infrastructure including water, tailings, offices, maintenance stores, workshops and communications were advancing well.

The Georgetown gold plant is situated 100km north by road from Laneway’s Agate Creek gold mine.

Cashflow from initial processing there is expected to help fund construction of a second mill at Agate Creek.

Mr Gordon has flagged excellent potential for the development of a regional processing hub at Georgetown given the endowment of associated tenements and the central location of the plant to other stranded gold resources.