PERTH (miningweekly.com) – Junior Echo Resources has gained mining approvals for its Yandal gold project, in Western Australia.
Both the mining proposal and the closure plans for the Julius and Orelia orebodies have been approved by the Department of Mines, Industry Regulation and Safety, marking the final approval required to allow for the start of mining activities at the Yandal mine.
“Receipt of the final key mining approvals needed for the Yandal project ahead of the completion of the updated definitive feasibility study later this month is an important milestone for Echo,” said MD and CEO Victor Rajasooriar.
“We are now in a strong position to secure project financing and seek the final board approval required to commence project development during 2019.”
The board of Echo in 2018 conditionally approved the Stage 1 development of the Yandal gold project, which is expected to produce some 380 402 oz of gold over a near four-year mine life, delivering projected net cash flows of A$184-million, and resulting in a pre-tax net present value of A$141-million and a pre-tax internal rate of return of 168%.
The combined Stage 1 and Stage 2 operations are expected to produce some 746 168 oz of gold over an eight-and-a-half-year mine life, generateing net cash flows of A$214-million, pre-tax net present value of A$147-million and a pre-tax internal rate of return of 155%.
Stage 2 of the Yandal project will see a significant cut-back of the Orelia openpit operation, in order to access ore at lower depths, in the later years of the operation. A final investment decision to advance the Stage 2 operation will only be required towards the end of the second year of the project life.