PERTH (miningweekly.com) – A scoping study by ASX-listed Carbine Resources into its Mount Morgan copper/gold project, in Queensland, has proven that the project was economically viable.
Based on a one-million-tonne-a-year operation, with a mine life of about eight years, the Mount Morgan project was expected to deliver about 36 000 oz/y of gold, 850 t/y of copper cathode and 230 000 t/y of pyrite concentrate.
The current scoping study incorporated only the current Joint Ore Reserves Committee-compliant resource of 8.3-million tonnes, grading 1.23 g/t gold and 0.15% copper for 329 000 oz of gold and 12 300 t of copper, and did not make use of the exploration target, which was estimated at between 32-million and 40-million tonnes, grading between 0.67 g/t and 0.79 g/t gold and between 0.11% and 0.19% copper.
The scoping study estimated that the Mount Morgan project would require a capital investment of some A$81.9-million, and would have an operating cost of A$32.70/t, while all-in sustaining costs were estimated at $393/oz.
Carbine told shareholders on Wednesday that following on from the positive scoping study, the company would now progress with the completion of a drilling programme, prior to the start of a prefeasibility study (PFS).
The PFS was scheduled for completion by the second quarter of next year.
Carbine acquired the Mount Morgan project in April this year, through the acquisition of unlisted Raging Bull Mining.
Under the terms of the acquisition, Carbine would sole fund the project to the completion of a bankable feasibility study to earn an initial 75% interest, and would then execute an option to acquire the remaining 25% through an independent valuation.
Raging Bull would also receive 25-million shares in Carbine on the successful production of 10 000 oz of gold and 5 000 t of copper from Mount Morgan, as well as any other projects acquired from Raging Bull.