PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Mt Morgan copper and gold project, in Queensland, has confirmed the potential for a low-cost operation, owner Carbine Resources said on Thursday.

The project was expected to require capital investment of A$63.3-million, down 29% from the A$81.9-million estimated in a 2014 scoping study, while operating costs were estimated at A$29.20/t and all-in sustaining costs (AISC) at $234/t.

The operating costs and AISC set out in the PFS were 12% and 68% lower respectively than the A$32.7/t and $393/t set out in the scoping study.

The PFS assumed a production rate of one-million tonnes a year over a mine life of eight years, to deliver production of 31 200 oz/y of gold, 3 200 t/y of copper sulphate and 211 000 t/y of pyrite concentrate.

The project would produce about 58 000 oz/y of gold equivalent in the first three years of operation, and an average 46 500 oz/y of gold equivalent over the eight-year mine life.

Carbine noted that the high production rate during the first three years of operation would ensure a relatively quick payback of capital costs and minimise financial risks.

The company would now progress the completion of a drilling programme at Mt Morgan prior to the start of a definitive feasibility study. The company would also assess the potential to raise early-stage financing for mine development, off the back of the PFS.

In the short term, Carbine would look to convert the inferred resource and exploration target at Mt Morgan into indicated resource, while upgrading the PFS to include additional defined indicated resource.

The company was also aiming to finalise binding offtake agreements for by-products produced at the mine and to conduct initial assessment of financing partners to potentially fast-track the project through to feasibility and into production.