PERTH (miningweekly.com) – ASX-listed Korab Resources has launched a prefeasibility study (PFS) on its Bobrikovo gold project, in the Ukraine.
The PFS would examine the production of between 60 000 oz/y and 70 000 oz/y of gold from the fresh rock zone starting below the oxide zone currently being mined.
As part of the developing of the oxide zone, Korab had been mining and stockpiling ore on a campaign basis, and had accumulated some 340 000 t of high-grade and low-grade ore, containing some 32 000 oz of gold ready for extraction.
The company had also mined some 700 000 t of very low-grade rock which had been stockpiled as waste, but which could be considered for treatment in the future through a low-cost second-hand gravity processing plant.
Construction of the gravity processing plant started in early March, with capital expenditure (capex) for the project estimated at A$700 000.
Korab told shareholders on Monday that the operating profit from 12 months of production was expected to be around A$11.5-million before tax. While production had been fully permitted, the start of concentrate production would depend on the timing of the completion of the gravity processing plant.
A large portion of the required capex for the Stage 1 processing plant would be raised through an upcoming share purchase plan (SPP), and would enable early cash generation.
Part of the funds raised through the SPP would also be used to fund the PFS study, the company said.