Name and Location
A1 gold mine project, Victoria, Australia.

Client
A1 Consolidated Gold.

Project Description
An updated Stage 1 scoping study has been completed on the A1 gold project. The study forms part of A1 Consolidated’s ongoing mine plans and its assessment of the company’s financial requirements to move into production.

In December 2014, A1 Consolidated announced that it had executed a formal share sale agreement with Octagonal Resources to acquire Octagonal’s Victorian assets, which include a fully permitted 150 000 t/y treatment facility at Maldon. The updated scoping study assumes that the acquisition is completed as planned and reflects changes to the production plan resulting from the acquisition.

Stage 1 mining of the A1 gold mine stockworks is limited to the area between 1420 RL and 1310 RL, which contains the indicated mineral resource estimated at 250 000 t at 5.1 g/t of gold.

The scoping study envisages a mine life of three years, with a production target of 378 000 t. This target equates to 67% of the Joint Ore Reserves Committee-compliant mineral resource estimate between 1420 RL and 1310 RL, and comprises indicated mineral resources of 37% and inferred mineral resources of 63%. During the first two years, 42% of production will be from the indicated mineral resources.

Following completion of the decline development of 1420 RL, stoping has been scheduled to be mined at a rate of 150 000 t/y at a grade of 6.52 g/t of gold, containing 30 000 oz of gold.

The scoping study assumes that all ore mined will be treated at the Maldon treatment plant. The plant includes a primary crushing and grinding circuit, followed by a carbon-in-leach recovery circuit. A1 plans to install its custom-designed gravity circuit at the mill to capture the coarse gold particles before leaching.

Stage 2 mining of the remaining inferred mineral resource will depend on the results of an ongoing diamond drilling programme to increase the level of confidence in a portion of the total inferred resource, which is currently at 1.17-million tonnes. It is expected that a Stage 2 scoping study will be completed to allow for continuous mining for a further three years.

Net Present Value/Internal Rate of Return
The Stage 1 scoping study estimates the project’s net present value, at a discounted rate of 8%, at $27.2-million and the internal rate of return at 94%.

Value
Preproduction costs are estimated at A$2.9-million.

Duration
Not stated.

Latest Developments
Mine development at A1’s namesake project has reached the primary underground production target.

In January this year, A1 appointed PYBAR as the underground mining contractor. In less than two months, the contractor had increased mine development rates, intersecting the 1 400 Stockwork zone.

With the primary production target having been reached, production mining is expected to start this month.

Key Contracts and Suppliers
Mining One (scoping study) and PYBAR (underground mining contractor).

On Budget and on Time?
Not stated.

Contact Details for Project Information
A1 Consolidated Gold, tel +61 8 9389 2111, fax +61 8 9389 2199 or email admin@a1consolidated.com.
Mining One, tel +61 3 9600 3588, fax +61 3 9600 3944 or email Info@miningone.com.au.