PERTH (miningweekly.com) – A feasibility study (FS) into the Karlawinda gold project, in Western Australia, has found that the project could support an average production of 100 000 oz/y over a six-and-a-half-year mine life.
ASX-listed Capricorn Metals on Monday said that the FS was based on an ore reserve of 21-million tonnes, grading 1.06 g/t gold for 713 000 oz of contained gold.
The FS was based on a single openpit mine and a three-million-tonne carbon-in-leach plant, which was expected to require a capital investment of A$133.3-million.
Based on those parameters, the project was expected to generate total revenues of just over A$1-billion, and would have a pre tax net present value of A$144-million and an internal rate of return of 31%.
Capricorn executive chairperson Heath Hellewell said that the FS provided the company with the confidence that the Karlawinda project would become a significant new Western Australian gold mine, with a strong production profile, low forecast operating costs, and the ability to generate strong financial returns over its initial six-and-a-half-year life.
“With certainty now around the state government gold royalty, and based on what are now high confidence capital and operating costs estimates, we are confident that the development of the project will proceed, subject to financing,” Hellewell said.
Subject to financing, construction at the project was expected to start in the second quarter of 2018.
In the meantime, Capricorn would restart exploration activities at the project in an effort to grow the resource.
“As our exploration programme once again ramps up, we are excited about the endowment potential of the region and the opportunities that exist within our current exploration targets,” Hellewell said.