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PERTH (miningweekly.com) – A feasibility study on the Second Fortune gold mine, in Western Australia, has found that the project could deliver some 73 000 oz over an initial two-year mine life.
ASX-listed Exterra Resources on Thursday said that the study considered the development of a mine below the existing openpit operation, generating a sorted concentrate for toll treatment.
The project will require a capital input of some A$9.4-million, with life-of-mine C1 cash costs estimated at A$989/oz, while all-in sustaining costs have been estimated at A$1 176/oz.
The project is expected to have a net present value of A$21.5-million and an internal rate of return of 133%, with a capital pay-back period of 13 months.
First gold production has been targeted for the third quarter of this year, with ore to be sourced from dumps, while underground ore would be delivered in the fourth quarter.
“The completion of the feasibility study is a major milestone in the development of the Second Fortune mining operation. We are very pleased to confirm the robust economics of the Second Fortune project and look forward to securing financing and commencing the mining activities,” said Exterra executive chairperson John Davis.
Based on the feasibility study, Exterra will now work to secure financing to allow for mining to start in the third quarter, putting the company on track to produce its first gold in the second half of 2017.
All regulatory approvals for the project have already been received to start project development. Site works at Second Fortune started in November of last year, including a camp upgrade and construction of the evaporation ponds.