PERTH (miningweekly.com) - The board of ASX-listed gold developer Kentor Gold has given the green light to develop Phase 1 of its Murchison gold project, in Western Australia.

The newly named Murchison project encompasses the Burnakura and Gabanintha gold and gold-copper projects, with production expected to start in June this year. The project would be developed over four phases.

Kentor said on Tuesday that initial production was scheduled at a rate of 24 000 oz/y from a combination of openpit and underground mining at Burnakura, over an initial three-and-a-half years.

Further exploration drilling was expected to increase the production and extend the mine life at the project.

Kentor said that work to reactivate the former mine and plant was well advanced, with the capital cost for the first phase of operations estimated at A$14.8-million, of which A$2-million had already been spent.

In the second phase of operations, which would start in 2013, Kentor would add an additional parallel heap- leaching operation, which would increase production for a minimal additional capital, and would lower the operating costs.

The third phase would see the expansion of the carbon-in-leach plant from 260 000 t/y to 500 000 t/y, while the fourth phase would see the flotation of copper-gold ore to produce a copper concentrate.

The Barnakura project has an initial inferred resource of some 10.6-million tons, at 1.5 g/t gold for 516 000 oz of gold, while the Gabanintha prospect is estimated to host an inferred resource of 4.5-million tons, at 1.4 g/t gold for 203 000 oz of gold.
 

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