Name of the Project
Jaurdi gold project.

Location
The project is located 35 km north-west of Coolgardie, Western Australia.

Client
Beacon Minerals.

Project Description
A prefeasibility study (PFS) has confirmed that the project is economically and technically viable.

Proven and probable reserves are estimated 2.47-million grading 1.9 g/t gold, providing a mine life of five years.

Jaurdi’s Lost Dog deposit contains total mineral resources of 2.88-million tonnes grading 1.8 g/t gold.

The PFS envisages an openpit mine that will deliver material to a new 500 000 t/y capacity carbon-in-pulp (CIP) gold treatment facility at the project.

The treatment circuit has been designed to produce a grind of P100 106 m and a leach retention time of 15 h. The company has made a financial provision for an additional leach tank if required.

Conventional openpit mining methods will be applied using a 90 t hydraulic excavator, a fleet of articulated dump trucks and ancillary mining equipment.

Beacon envisages that load-and-haul activities will be undertaken by owner miner operators using a mixture of owned and dry hired equipment.

All drill-and-blast and grade-control drilling will be undertaken by contractors.

All technical and managerial direction will be governed by Beacon.

The tailings storage facility strategy is based on backfilling the void left by openpit mining. The openpit will be mined in panels and engineered retaining walls will be built to provide tailings disposal cells. Initially, the Black Cat pit will be used as a tailings facility until Panel 1 of the Lost Dog openpit has been prepared.

The estimated tailings capacity of the Black Cat and Lost Dog openpits is five-million tonnes.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of A$70.49-million and an internal rate of return of 75%, with a payback of 11 months.

Value
Preproduction capital is estimated at A$21.4-million.

Duration
First gold production, based on the PFS production forecast, is expected in the first half of 2019.

Latest Developments
None stated.

Key Contracts and Suppliers
BM Geological Services (mineral resource estimate).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Beacon Minerals, tel +61 8 9322 6600, fax +61 8 9322 6610 or email admin@beaconminerals.com.