As part of an updated pit design 35,000 tonnes grading 5 grams per tonne of gold will be extracted, for 5500 ounces, over the three months.

Contractor Advance Civil Earthworks will mine the ore from the open pit at a stripping ratio of 8:1.

Laneway is looking at two separate options for toll treatment that are both closer to Agate Creek than the previous mill used: Maroon Gold's Black Jack carbon-in-leach plant.

With all-in-sustaining costs of production expected to be no more than $1580 per ounce Laneway is expecting positive cash flows based on the spot gold price of $2400/oz.

Laneway CEO Brad Gordon said the company was pleased to restart mining at Agate Creek's high grade Sherwood pit.

"Together with the pending processing arrangements expected to be concluded shortly this will ensure a rapid move back into gold production at an expected very healthy cash margin," he said.

"This short campaign will yield material cashflow for Laneway with further potential beyond that, pending approvals expected at the end of the current financial year."

Gordon said the longer-term focus was on on-site processing at Agate Creek to monetise the substantial gold resource of 471,000oz already defined.