PERTH (miningweekly.com) – An optimisation study of the Karlawinda gold project, in Western Australia, has delivered a 69% increase in the forecast pre-tax net present value (NPV), while also reducing up-front capital costs by 10%.
ASX-listed Capricorn Metals on Wednesday reported that the pre-tax NPV for the Karlawinda project had increased from the A$144-million estimated in the 2017 feasibility study, to A$243-million, while the internal rate of return had increased from 31% to 36%.
Up-front capital costs for the 1.5-million-ounce Karlawinda project have decreased from A$133.3-million to A$132-million, while significant improvements have been identified in the process flowsheet, resulting in higher throughput of oxide and laterite ores, resulting in lower operating costs.
Furthermore, the optimisation study also increased the mine life by two years, to eight and a half years, with a 25% increase in the life-of-mine gold production to 823 000 oz, up from the 660 955 oz estimated in the feasibility study.
As a result, life-of-mine revenues have also increased from an estimated A$1.09-billion to A$1.4-billion.
Capricorn told shareholders that the company was now working with several short-listed banks with the aim of finalising the debt component for the project in the September quarter.
The company has also started a mining contractor tender process for both drill/blast and the load/haul contracts. The tender process will be finalised by the end of July and a final decision on the preferred mining scenario will be made once tenders have been reviewed.