PERTH (miningweekly.com) – Takeover target Explaurum has released the results of an updated feasibility study for its Tampia gold project, which has increased the project’s estimated net present value from A$125-million to A$156-million, while the internal rate of return has increased from 47% to 70%.

Explaurum said on Friday that the update to the feasibility study incorporated further metallurgical test work, mine design and scheduling, along with refined capital and operating cost estimates.

The study has seen the expected capital expenditure for the Tampia project decline from A$119-million to A$111-million, while the estimated average C1 operating costs has declined from A$885/oz to A$825/oz, while all-in sustaining costs have declined from A$998/oz to A$917/oz.

The updated feasibility study estimated a life-of-mine (LoM) gold production of 481 398 oz, which is only slightly below the 489 517 oz previously estimated, with the LoM now estimated at just under five years.

Average annual gold production has increased from the estimated 93 241 oz/y to 103 157 oz/y.

“Explaurum undertook to provide shareholders with critical Tampia project information in order to enable evaluation of the company within the context of the current Ramelius takeover offer,” said MD John Lawton on Friday.

“This updated Tampia feasibility study delivers on this commitment and details new and relevant information not previously assessed in the independent expert’s report.”

Lawton said that the updated feasibility study has confirmed that the Tampia project is technically sound and robust, and places Tampia in the lowest cost quartile of gold projects globally.

The updated study also generated margins of over A$800/oz at current spot gold prices, which were trading at A$75/oz higher than the gold price used in the updated feasibility study.

“We have commenced targeting extensions to the Mace resource, which are planned to be drilled aggressively over the upcoming summer period. This will be coupled with advancing exploration at the highly prospective A8 target to the north.”

Explaurum has meanwhile urged shareholders not to take any action after suitor Ramelius Resources increased its offer price for the junior company.

Ramelius earlier this week added a 2c a share cash offer to its existing one-for-four share offer already in place, urging Explaurum shareholders to accept the offer in lieu of an Explaurum board-backed deal with fellow listed Alkane Resources.