Why the Evolution Mining (ASX:EVN) share price is charging higher today

Miner with thumbs up at mine

The Evolution Mining Ltd (ASX: EVN) share price has started the month in fine form.

In morning trade, the gold miner’s shares are up 4.5% to $3.65.

Why is the Evolution Mining share price charging higher?

Investors have been bidding the Evolution Mining share price higher today for a couple of reasons.

One was a strong rise in the gold price overnight amid heightening market volatility. This has boosted the gold miners today, leading to the S&P/ASX All Ordinaries Gold index rising 2.1%.

Also supporting the Evolution Mining share price was the release of an announcement.

According to the release, the company’s Cowal Gold Operation has been granted regulatory approval to develop an underground mine by the NSW Department of Planning, Industry & Environment (DPIE).

The development will extend the operation’s permitted mine life to 2040 and is part of the company’s plan to safely and reliably produce in excess of 350,000 ounces of gold per annum from Cowal.

It will come at a cost. Management estimates that an investment of $380 million will be necessary for the development. Though, it has previously stated that it expects to generate a strong return on investment from the underground mine.

Management commentary

Evolution Mining’s Executive Chairman, Jake Klein, was very pleased with the news.

He said: “The approval of this new underground mine at Cowal is a significant milestone for this world class operation. We have a bright future at Cowal with permitted mine life extended to 2040, and further job security for our local employees and contractors. We would like to acknowledge and thank the Bland, Forbes and Lachlan Shire Councils, the DPIE and the NSW Government, the NSW Minerals Council, the traditional custodians of the land the Wiradjuri people and the local community for their support of this important project.”

The Evolution Mining share price is still down a disappointing 31%.

The post Why the Evolution Mining (ASX:EVN) share price is charging higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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