Panoramic weighing options at Gum Creek

PERTH (miningweekly.com) – ASX-listed Panoramic Resources reported on Friday that it was weighing its options at the Gum Creek gold project, in Western Australia, after a review of its scoping study proved positive.

Panoramic in February this year announced that it would undertake a review of the Gum Creek project, previously known as the Gidgee project, on the back of a higher gold price.

The free milling scoping study has resulted in a preproduction capital cost estimate of A$62-million, with the project expected to deliver some 290 000 oz/y of gold over a project life of nearly six years.

The study was based on mining openpit resources from the Swan, Swift and Howards resources, and processing it through a new 800 000 t/y carbon-in-leach processing plant.

All-in sustaining costs for the free milling operation have been estimated at A$1 209/oz.

The free milling scoping study compared with a 2012 scoping study, which estimated that the project would require a capital investment of some A$127-million to deliver an 80 000 oz/y to 90 000 oz/y operation.

The 2012 scoping study contemplated mining from a combination of various underground and openpit sources, including the Swan Bitter, Swift, Howards, Toedter, Specimen Well and underground ore from the Wilsons pit.

Under that study, a processing plant with a 1.05-million-tonne-a-year capacity was also considered, to produce 606 000 oz of gold over an initial seven years.

In August last year, Panoramic announced its intentions to sell the Gum Creek project, after a number of parties had shown interest in the project.

However, the company said on Friday that although Panoramic had committed to a sales process, the company was now reviewing its options to enhance shareholder value through either a sale of the project, or by retaining and developing the gold asset.

Panoramic had started detailed design and optimisation for a feasibility study, along with seeking indicative funding terms for the project.