PERTH (miningweekly.com) – An optimisation study into the Bardoc gold project, in Western Australia, has found that bringing forward production from the Aphrodite deposit could increase production by some 80 000 oz in the first five years of the mine's life.

ASX-listed Bardoc Gold on Thursday told shareholders that the results from the cashflow optimisation study had validated the company’s proposed plan to increase the forecast gold production rate, margins and free cash-flow during the first five years of operations by bringing forward production from the Aphrodite deposit in the mine schedule.

As part of this revised strategy, the proposed processing facility would be located at Aphrodite, rather than next to the Zoroastrian and Excelsior deposits. This provides the opportunity to extract further value from the 1.6-million-ounce Aphrodite project and, in the future, from the highly prospective Omega, Sigma and Gamma lodes, where exploration has highlighted the strong potential for significant resource growth.

The cash-flow optimisation study has concluded that the revised strategy will increase total production in the first five years by 80 000 oz, and will see the company reach midtier producer status sooner, with production forecast to ramp up to 150 000 oz/y by year three.

“Bringing forward development of the cornerstone Aphrodite deposit will see Bardoc reach the 150 000 oz/y gold production milestone by year three. With further potential extensions of the Zoroastrian and Aphrodite undergrounds, we can ensure this profile continues well into the future,” said Bardoc CEO Robert Ryan.

“The plan also de-risks the project by bringing forward the capital expenditure for the flotation circuit and increasing gold production by 80 000 oz in the first five years.

“The increased cash-flows achieved in the first five years of operations will improve the debt repayment profile and ensures Bardoc can return value to shareholders earlier.”

Ryan said that the new plan will allow the company to reap the benefits of underground mine extensions earlier in the project’s life.

The optimisation study has increased the capital cost estimate for Bardoc from the A$177.4-million estimated in the original definitive feasiblity study (DFS), to A$232.4-million, which included a A$20.7-million investment in the up-front construction of the flotation plant.

All-in sustaining costs for the enlarged project have also increased from the A$1 188/oz considered in the DFS, to A$1 301/oz, while the project’s net present value has decreased from the A$479-million in the DFS, to A$374-million, at a gold price of A$2 250/oz, and the internal rate of return has decreaed from 41% to 33%.

Bardoc said on Thursday that based on discussions with potential financiers, the company believes the revised mine scheduling with its cashflow optimisation strategy would be positively received and strengthen its lending position.

To date Bardoc has received a number of indicative term sheets from leading Australian and international lenders. The independent technical expert review is well progressed for debt financing to be completed in the fourth quarter of 2021.