PERTH (miningweekly.com) – The Coolgardie gold project, in Western Australia, could yield about 65 000 oz of gold over an initial 28-month mine life, ASX-listed Primary Gold reported on Tuesday.
A prefeasibility study (PFS) found that the project would require a capital investment of A$850 000 to develop a 480 000 t/y operation, based on a maiden mineral resource of 1.27-million tonnes, grading 1.7 g/t gold.
The study was based on mining a series of low capital cost starter pits, with three shallow gold pits planned, allowing for operational flexibility and blending on existing mining leases.
“The PFS marks a key milestone in the company’s growth from explorer to producer. The company has an outstanding land position in Coolgardie, which is historically a major gold producing district in the heart of the Goldfields,” said Primary Gold MD Garry Mills.
“These land holdings continue to provide Primary with opportunities for growth. The PFS demonstrates a very attractive gold production project with a low entry hurdle on already existing mining leases.”
Mills said on Tuesday that first gold has been targeted for the fourth quarter of this year, subject to regulatory approvals, and the successful conclusion of contract mining and toll treatment agreements.
“It is encouraging that Primary is aiming to commence operations with no debt, cash in the bank, and be pouring gold within 12 months of acquiring the project, with a fourth pit undergoing feasibility and several underground targets to follow up.”