PERTH (miningweekly.com) – A scoping study has estimated that the Pilbara gold project, in Western Australia, will require A$78-million to build a mine producing 290 000 oz over five years.
ASX-listed De Grey mining told shareholders on Friday that the scoping study was based on an openpit mining operation and a purpose-built one-million-tonne-a-year oxide carbon-in-leach plant.
A sulphide and flotation and regrind circuit would be added in the third year of the operation, which would cost an additional A$18-million and would be funded from cash flow.
Yearly gold production would range from between 65 000 oz in the first year and 51 000 oz in year four.
“The scoping study results, using reasonable assumptions, are highly encouraging. The project currently shows a five-year openpit mine life, but there is clear potential for significantly increased cash flow through increases in mine life, which we expect to achieve through the company’s current resource programme,” said De Grey chairperson Simon Lill.
He noted that further substantial upside was seen in improved mine scheduling, increased economies of scale, inclusion of low capital cost heap leaching of low-grade mined material, and potentially improved recoveries within the sulphide material.
The scoping study was based on a resource of 4.8-million tonnes, at 2.1 g/t gold for 325 000 oz.
A prefeasibility study into the Pilbara gold project has now been launched, to be followed by a definitive feasibility study.