Intermin eyes second gold project

PERTH (miningweekly.com) – A scoping study into the Goongarrie Lady gold project, in Western Australia, has estimated that the project could deliver some 15 639 oz of gold over a seven-month mine life, owner Intermin Resources said.

The oxide and transitional material project will require a capital investment of around A$530 000, while all-in sustaining costs have been estimated at A$1 081/oz, and free cash has been estimated at A$7.6-million over the project life.

“The results of the scoping study for Goongarrie Lady demonstrates strong potential to generate significant cash flow for the business with low up-front capital requirements and very good cash margins,” said Intermin MD Jon Price.

“The company’s business model is to develop our 100% owned gold mines and generate cash flow to self-fund our aggressive exploration and acquisition strategy with minimal shareholder dilution.”

Price said that with the Teal gold mine now in production, the Groongarrie Lady project was shaping up as the company’s next mine development, with a feasibility study due in the September quarter, and a development decision shortly thereafter.

Intermin will also undertake additional extensional and infill drilling to maximise resource extraction and improve geological confidence. Drilling will start in May and form part of the feasibility study.