PERTH (miningweekly.com) – Mozambique-focused gold developer Auroch Minerals is considering the near-term production potential of its Manica gold project, after a scoping study confirmed robust economics.

The ASX-listed company reported on Monday that the scoping study evaluated the establishment of a Stage 1 operation, consisting of a 30 000 t/m nonrefractory gold plant, which would create a pathway to unlocking to total 2.82-million-ounce resource at Manica through future developments.

The Stage 1 development was estimated to cost $39-million, and would produce 172 752 oz of gold, over an operating mine-life of eight years, based on a resource of 3.86-million tonnes, grading 2.08 g/t gold, for 258 300 oz.

Auroch said the Stage 1 development was a key to unlocking the larger Stage 2 expansion, as it exposed the deeper refractory ore found, with the Stage 2 project consisting of a 120 000 t/m openpit and underground mining operation, producing about 90 000 oz/y of gold.

The Stage 1 development would be expanded to 60 000 t/m during Stage 3 of the operation, based on the outcome of further exploration drilling within the current mining concession and consolidated areas.

Based on the scoping study, Auroch would now proceed with the Stage 1 definitive feasibility study for the engineering design of the project.

"Pulling together all of the technical work over the past eight months has produced a very robust project development strategy that both minimises capital and provides maximum upside flexibility to exploit the nonrefractory resources, as well as unlocking the potentially lucrative deeper Fair Bride refractory resources in the first instance,"  MD Dean Cunningham commented.

"We are in a confirmed gold camp and our exploration programme within our mining concession and adjacent properties should result in additional resources that could justify the expansion of the Stage 1 project to 60 000 t/m, from the 30 000 t/m envisioned."

Cunningham said that the development and construction of a Stage 1 centralised plant will give the company "first mover advantage" with the potential of further acquisitions or tolling arrangements through its processing facilities.