JOHANNESBURG (miningweekly.com) – Australian miner GBM Resources expects to start gold production from a small-scale heap leach operation on the Eugenia deposit at Mt Coolan in the fourth quarter of 2017, following the completion of a scoping study.
The study, carried out by Mining One, demonstrates that a 16-month operation at Eugenia has the potential to generate a strong positive cash flow, with recovered gold ounces totalling 32 588 oz at a C1 cost of $848/oz. Capital is estimated at $8.3-million.
Located in the Queensland Drummond basin, the Eugenia heap leach is one of three near-term gold production scenarios at Mt Coolon currently under review, estimated to contain a total of 315 000 oz of gold.
Free cash flow generated from the Eugenia heap leach operation will be allocated to accelerate expanding the known openpit resources and the mineralising systems, with the aim of building the Mt Coolon gold project inventory to a level that will support the commissioning of a carbon-in-leach plant.
The company will now progress towards a prefeasibility study.