PERTH (miningweekly.com) – A restart strategy at the Granite Belt silver project, in Queensland, has found that the project could restart production in the second half of 2017, subject to the receipt of regulatory approvals.
Junior Moreton Resources noted that for a capital investment of less than A$12-million, the Granite Belt project could be restarted to produce some 90 000 oz/m of silver over the first eight years of operation.
During full-scale operations, the project will employ between 40 and 60 people, and will have a total C1 cash cost of around A$12.50/oz.
The restart strategy was based on the Twin Hills and Mt Gunyan deposits, which hosts a measured resource of 1.8-million tonnes and an indicated resource of 4.1-million tonnes; however, the strategy did not take into account any exploration upside potential.
“This is a compelling prospect for a small-scale mining operation that requires limited up-front capital and has significant upside potential not factored in,” said Moreton MD Jason Elks.
“Project feasibility studies have been undertaken in parallel with the development of an environmental management plan, with both aspects benefiting from considerable historic studies and reviews undertaken by former operators, the state government and consultants. Given the wealth of data available, Moreton is confident in the defined restart strategy.”
Moreton has now allocated a budget of A$9-million to exploration and process optimisation studies, with the grant of a mining lease anticipated within the next three to six months.