STRAITS Resources is expected to start production at the Hillgrove gold and antimony mine in the second half of next year.
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The Western Australian company acquired the mine last month through a deal that will see it pay $8 million to the mine's current owners in four equal instalments over 12-months.
On Monday, the company released its latest statement through Member for Northern Tablelands Richard Torbay.
Mr Torbay said a regular team of up to 10 employees would continue working the site until 2005.
The company has also indicated the prospect of further contracted work during the planning and exploration period.
Mr Torbay said he had made representations to the State Government regarding regulations to allow the new operation to proceed.
Last month he met with Straits Resources executives and Hillgrove mine workers during the final negotiations of the sale.
Straits chief exective officer Milan Jerkovic said the company's annual target was to produce 100,000 gold equivalent ounces per annum.
He said exploration would target a minimum reserve base of about 500,000 ounces and the first phase would take 8 to 12 months.
Mr Torbay said the company would develop its business plan, preliminary drilling and sampling work up until mid-2005.
"Once the Straits board has approved the plan for the mine to recommence operations, I have been assured there will be an extensive campaign," Mr Torbay said.
"This is good news for our community and it will be most welcome to see Hillgrove Mine operating again and eventually building up to full employment of about 100 jobs."
Straits Resources general manager Martin Purvis said world gold and antimony markets supported the company's acquisition.
Demand for antimony, which acts as a fire retardant in plastics and fabrics, was firm, while gold had recovered its market lustre after a slump in recent years.
"While every new mining venture is an enormous challenge, Straits had been encouraged by the evident good will and support from the people of Hillgrove and Armidale for this venture to succeed," Mr Purvis said.
Straits Resources was founded in 1992 and listed on the Australian Stock Exchange in 1994.
The company has established itself as a low-cost copper and coal
producer.
It recently sold the Nifty Copper Operation at Pilbara, Western Australia to a large Indian Conglomerate.
Straits operates the 2 million tonnes per annum Sebuku Coal Operation in Indonesia and holds other copper and gold mining interests throughout Australia and Indonesia.
