Name of the Project
Okvau gold project.

Location
The project is located in the Mondulkiri province, in eastern Cambodia.

Project Owner/s
Renaissance Minerals, a wholly owned subsidiary of Emerald Resources.

Project Description
Okvau has an independent Joint Ore Reserves Committee-complaint indicated and inferred mineral resource estimate of 17.68-million tonnes grading 2.01 g/t gold, containing 1.14-million ounces at a 0.70 g/t gold cutoff.

The definitive feasibility study (DFS) is based entirely on probable reserves. Inferred resources, an estimated 7 000 oz within the final pit design, have not been included.

The DFS has confirmed the robust nature of the project, with an initial operating life-of-mine of more than seven years and production of about 106 000 oz/y of gold on average.

The deposit will be mined using conventional openpit mining methods from one pit at a relatively constant mining rate. Mining will be undertaken by drilling and blasting ore and waste, with loading and hauling being undertaken by a mining contractor.

The proposed processing plant has a throughput of two-million tonnes a year and will use a single-stage crushing circuit and semiautogenous milling circuit, sulphide flotation and regrind mill, followed by conventional cyanide leaching.

Tailings from the process plant will be disposed of in a dedicated tailings storage facility (TSF). The TSF will be located within a broad shallow valley to the south-east of the openpit, comprising a primary embankment to the south and a saddle embankment to the west. The waste-rock dump will be located to the north and north-west of the TSF and will be adjacent to the TSF embankment to enhance the structural stability of the TSF.

The proposed TSF development concept contains the currently envisaged life-of-mine tailings and provision for freeboard to contain process water and stormwater inputs. Assuming a tailings settled density of about 1.40 t/m3, tailings production of 14.3-million tonnes will require a storage requirement of about 10.5-million cubic metres. The TSF has been designed to accommodate 17.8-million cubic metres, including freeboard.

The project has an initial operating mine life of 7.2 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
A review of the DFS, at a higher gold price of $1 450/oz, has increased the projected net present value of the project from $217-million to $337-million and the internal rate of return from 48% to 69%, compared with the original DFS, which was based on a spot price of $1 250/oz.

Capital Expenditure
Total development costs have been estimated at $98-million.

Planned Start/End Date
Not stated.

Latest Developments
Emerald Resources will raise A$75-million through a share placement to fund development activities at its Okvau gold project.

The company will place an initial 762.1-million shares at a price of 4c each under its existing placement capacity to raise A$30.4-million, with a further 1.11-billion shares to be placed, subject to shareholder approval, to raise a further A$44.5-million.

A shareholder meeting is scheduled for March 13.

The offer price represents a 9.1% discount to Emerald’s closing price on January 20, and an 8.7% discount to the five-day volume weighted average share price, as well as a 6.2% discount to the ten-day volume weighted average share price.

Funds raised under the placement will allow for the continued development at Okvau while the company finalises a $60-million project finance facility.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Emerald Resources, tel +61 8 9286 6300, fax +61 8 9286 6333 or email info@emeraldresources.com.au.