PERTH (miningweekly.com) – A scoping study into ASX-listed Renaissance Minerals’ Okvau gold project, in Cambodia, has estimated that the project could deliver some 93 000 oz/y over an eight-year mine life.
Based on a mineral resource of 11-million tonnes grading 2.3 g/t gold, the scoping study assessed the possibility of establishing a 1.5-million-tonne-a-year flotation/carbon-in-leach processing plant fed by material sourced from an openpit operation.
The project would require a capital investment of $133-million, and would operate at a life-of-mine cash cost of $735/oz, while the internal rate of return had been estimated at 29%.
“We are very pleased with the results of the study, which demonstrates the viability of developing Okvau and transforming Renaissance into an emerging gold producer with a high-grade, low-cost operation,” said MD Justin Tremain.
He pointed out that a low all-in sustaining cost of $783/oz, a 2.3 g/t head grade and a high conversion of some 72% of the indicated resource into openpit material was a clear illustration of the robust nature of the project.
“Beyond the current indicated resource that was the focus of the study, there remains exceptional exploration potential, both around Okvau and within the broader project area. Renaissance has recently started a 15 000 m drilling programme to test that potential,” Tremain added.
He was hopeful that defining additional mineralisation in these areas could have a positive material impact on the project economics.
Meanwhile, the company was hoping to start a prefeasibility study immediately, and would likely complete this by mid-2015.