PERTH (miningweekly.com) – A prefeasibility study (PFS) into the ASX-listed Focus Minerals’ Coolgardie gold deposits, in Western Australia, has found that the projects could support an average gold production of 32 000 oz/y over a four-year mine life.
The PFS considered an underground mine at the Bonnie Vale deposit and openpit mining operations at the Greenfields and Brilliant deposits, with the ore to be processed through the Three Mile Hill processing plant, owned by Focus.
A maiden Joint Ore Reserves Committee-compliant underground ore reserve of 625 000 t has been declared at Bonnie Vale, grading 6.16 g/t gold for 123 700 oz, while a maiden ore reserves for the Greenfields deposit has been estimated at just over one-million tonnes, grading 1.45 g/t gold for 47 100 oz of contained gold.
The PFS estimated that a capital investment of A$53-million would be required to develop the three operations, with all-in cash costs forecast to reach A$1 200/oz. The study estimated that the Coolgardie deposits would have a joint pre-tax net present value of A$37-million and an internal rate of return of 28%.
The proposed mine plan assumed that the development of the deposits would be funded through cash reserves, Focus told shareholders on Friday.
The company added that it was currently preparing a mining proposal required by the Department of Mines, Industry Regulation and Safety for both the Bonnie Vale and Greenfields deposits, while negotiations around the Brilliant deposit will also continue.