Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Mungana Goldmines has been granted a mining lease for its King Vol project, in Queensland, paving the way for production to start in 2017.
MD Tony James told shareholders on Tuesday that the granting of the mining lease was a significant milestone towards the development of the high-grade zinc project.
“The outlook for development of the King Vol deposit is very strong. The project has high-grade zinc and an estimated preproduction capital cost that is less than that of a greenfield project owing to there already being key plant components and major infrastructure in place.”
A recent scoping study estimated that the King Vol project would require a capital investment of A$37.4-million, with an estimated A$7-million of additional funding required before the project became cash flow positive.
The project would likely produce 35 900 t/y of zinc, 840 t/y of copper, 910 t/y of lead and 185 000 oz/y of silver-in-concentrate, delivering a net operating pretax average cash flow of A$35-million a year.
The project was expected to have an initial mine life of some four-and-a-half years.
Mungana was targeting first production from King Vol in early 2017.