The mine, located about 110km north-east of Kalgoorlie, will operate a 2 million tonne per annum production plant which will produce about 110-140,000 ounces of gold each year over the next 10 years.

PacMin penciled in the start-up date whilst announcing a 50% increase in net profits to $32.4 million for 1999-2000 financial year.

Providing the main impetus for the strong performance was record gold production of 230,357oz (up 19%) from the group’s Tarmoola mine in Western Australia, combined with a 7% reduction in cash operating costs.

The company’s position was also aided by gold hedging which during the last financial year saw the company realise a price of $518/oz compared with an average spot price of $448/oz during the same period.

PacMin is not so bullish for the year ahead. The company has warned that waste stripping at Tarmoola will reduce gold output levels back from the current record.

The company has scheduled its annual meeting at the Celtic Club in West Perth for November 8.