Name of the Project
Bird-in-Hand gold project.

Location
On the site of the historic Bird-in-Hand gold mine, in Adelaide Hills, South Australia.

Project Owner/s
Terramin Australia.

Project Description
The project has a Joint Ore Reserves Committee-compliant resource of 650 000 t at 12.6 g/t for 265 000 contained ounces of gold and 5.8 g/t for 122 000 contained ounces of silver.

The project will involve the underground mining of gold-bearing ore at the Bird-in-Hand site, the transportation of ore to Angas zinc mine for processing and the sale of gold concentrate products to market.

Over the five year life-of-mine, the plant will produce an average of 8 000 dry metric tonnes of concentrate a year, containing 47 000 oz of gold and 22 000 oz of silver at 11 g/t gold and 5 g/t in silver by-product credits.

The project has a four-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$102-million and an internal rate of return of 96%, with a payback of one year.

Capital Expenditure
Total preproduction capital for the project is estimated at A$34-million.

Planned Start/End Date
Not stated.

Latest Developments
The South Australian government has refused Terramin Australia’s application for a mining lease and a miscellaneous purposes licence for the Bird-in-Hand gold project.

The company is surprised and disappointed by the decision, as the applications have been supported by comprehensive studies, based on science, which demonstrate that there will be no adverse environmental outcomes arising from Terramin’s mining proposal.

According to the company, it was not made aware of any issues with the methodology or conclusions of these studies, despite the studies being peer reviewed, and that all questions posed by the Department of Energy and Mining (DEM) had been answered, in addition to having provided all the information and documentation required.

“Terramin understood that it had provided comprehensive responses to the satisfaction of DEM and addressed all regulatory requirements. To have been through this exhaustive process and then be denied the mining lease with no clear explanation of the grounds for this decision is most unexpected,” the company said in a statement on February 9.

“This decision will mean that the communities of Woodside and Strathalbyn will miss out on the creation of over 140 highly paid mining jobs and many more indirect jobs. The people of South Australia will miss out on the mine’s significant economic contribution to the state economy,” the company lamented.

The Association of Mining and Exploration Companies (Amec) has said that it is disappointed in government’s rejection of the project.

Amec has added that it also has major implications for the hopes of South Australia to attract new major project investment: “Industry and investors will now rightly question whether it is worthwhile investing in South Australia, and whether the South Australian government actually wants mining investment.”

Terramin will now await the release of the assessment report prepared by DEM for the Minister before considering its options.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Terramin Australia, tel +61 8 8213 1415 or email info@terramin.com.au.