PERTH (miningweekly.com) – While increasing the projected capital costs for the Matilda gold project, in Western Australia, the definitive feasibility study (DFS) has also resulted in higher output and a longer mine life, owner Blackham Resources reported on Wednesday.
An October prefeasibility study had estimated that the project would require a capital investment of A$28-million to deliver an average of 98 000 oz/y over a mine life of nearly five years.
C1 cash costs at the time were estimated at A$920/oz.
However, the DFS has estimated that the project would require about A$32-million to develop, and could deliver yearly production of 101 000 oz/y over the first five years of a seven-year mine life, with life-of-mine production estimated at 668 000 oz.
C1 cash costs have also declined to A$850/oz.
The DFS estimated that the project would have a net present value of some A$170-million and an internal rate of return of 150%.
“The Matilda gold project DFS has confirmed the robust near-term cash flows from the project, enabling us to benefit from the current strong Australian dollar gold price,” said Blackham MD Bryan Dixon.
“Matilda is the most capital efficient, nearest-term producer and has the shortest payback amongst its Western Australian development peers.”
Openpit mining at Matilda would be undertaken by contractors, and the project would operate on a fly-in, fly-out basis. Ore would be hauled to the currently decommissioned Wiluna gold plant, about 20 km away.
Blackham would recommission the Wiluna gold plant, and Matilda was expected to deliver its first ore by the third quarter of this year.
Edited by: Creamer Media Reporter
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