JOHANNESBURG (miningweekly.com) – Gold developer Empire Resources has completed a bankable feasibility study (BFS) for the Penny’s Find project, near Kalgoorlie, in Western Australia, which indicated that the project was “technically sound” and “financially viable”.
The BFS, which was based on a probable ore reserve of 146 000 t at 4.62 g/t of gold, showed that the project would generate A$7.6-million undiscounted free cash flow in less than a year, based on a gold price of A$1 500/oz.
MD David Sargeant commented that the project represented an "excellent” near-term production opportunity for Empire, given the current high gold price. Every A$100/oz rise in the gold price over A$1 500/oz would generate an extra A$2-million cash flow.
The BFS proposed conventional mining of a single openpit to a depth of 80 m, using excavators and dump trucks with ore transported to a nearby toll milling facility.
The BFS estimated that the mine would require capital expenditure of A$1.5-million and that it would have an eight-month payback period. The operation would have an 11-month mine life.
Sargeant stated that project financing discussions were under way and that the company aimed to produce gold in the second half of this year.
The Western Australian Mines and Petroleum Department had already issued the required mining approvals for Penny’s Find.
Edited by: Creamer Media Reporter
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