PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Awak Mas gold project, in Indonesia, has estimated that the project could produce 100 000 oz/y over an initial 11-year period.
Owner Nusantara Resources on Thursday reported that the DFS estimated a post-tax net present value of $152-million and an internal rate of return of 20.3%, based on a gold price of $1 250/oz.
The Awak Mas project is expected to require a capital pend of $146-million to develop, with pre-production mining expenditure estimated at $16-million and project sustaining capital at $29-million. C1 cash costs for the operation have been estimated at $643/oz, and all-in sustaining costs at $758/oz.
Nusantara MD and CEO Mike Spreadborough told shareholders that the DFS confirmed the project was technically feasible, financially robust, and had significant opportunities to increase project value through optimising the current mineral resource and through further exploration.
“The completion of the DFS is a significant milestone for the company, with work now progressing on securing financing for the project development and continuing exploration.”
The project currently has an ore reserve of 1.1-million ounces, within a two-million ounce mineral resource. The DFS is based on two openpit mines feeding a 2.5-million tonne a year processing plant.