PERTH (miningweekly.com) – The Nicolsons gold mine, in Western Australia, has been cleared for development, after gaining final approval from the Department of Minerals and Petroleum for its project management plan.
The project was expected to have an initial four-and-a-half year mine life, and would deliver an after-tax net profit of A$50-million, a net present value of A$42-million and an internal rate of return of 162%.
ASX-listed Pacific Niugini said on Tuesday that with the final approval now in place, the project management team was preparing to start work during the coming weeks, with pit dewatering and plant works expected to start as soon as possible.
“This final approval for the Nicolsons mine allows Pacific Niugini to immediately start work for the refurbishment of processing facilities and construction of an underground mine,” said MD Paul Cmrlec.
“Dewatering of the openpit will be a short process and commencement of pumping is imminent. Key contracts for the works will be executed as soon as possible to ensure that construction works are able to be initiated as soon as mine financing, including completion of the current rights issue, is in place.”
Existing infrastructure at the Nicolsons mine would allow Pacific Niugini to restart operations for a minimal capital injection of A$10.7-million, with the project targeting production of about 130 000 t/y from a small-scale underground mine at the base of the existing openpit operation.
Pacific Niugini secured a financing proposal for the mine restart during December last year, and was now assisting its joint venture partner Bulletin Resources to do the same.