PERTH (miningweekly.com) – A scoping study into the Mt Morgans gold project, in Western Australia, has indicated that the project could produce some 220 000 oz/y over its first five-year mine life.
Based on the development of a standalone 2.5-million-tonne-a-year plant servicing four openpit and three underground mines, the project would require a capital investment of A$157-million.
The project was estimated to have a mine life of some seven years and would produce 1.2-million ounces, at 2.5 g/t gold over its mine life, including 818 000 oz, grading 5.4 g/t gold from underground operations.
The scoping study estimated that the project would have a life-of-mine all-in sustaining cost of A$929/oz and a C1 cash cost of A$812/oz.
“This detailed scoping study shows that Mt Morgans is set to be an outstanding Western Australian gold project at every level. Strong production rates and low costs will likely deliver robust margins and cash flow, particularly at the current Australian dollar gold price,” said Dacian executive chairperson Rohan Williams.
“We are confident that Mt Morgans’ strong economic and technical merits will enable us to secure the funding required on attractive terms. This will help ensure Mt Morgans delivers strong returns for Dacian shareholders.”
The scoping study has estimated that construction of the Mt Morgans project would take some 12 months to complete, with first gold production targeted for early 2018.
A decision to mine would be made following the completion of a detailed feasibility study, which was currently scheduled for completion at the end of 2016.
“With the definitive feasibility study on track for completion late next year and extensive infrastructure already in place, we expect to begin production in 2018. While this schedule is implemented, we intend to continue an aggressive exploration campaign to unlock the full value of the Mt Morgans project,” Williams added.