Name and Location
Bullabulling gold project, Australia.

Client
Bullabulling Gold.

Project Description
The Bullabulling mine plan is based on the development of four openpits, with a total mining inventory of 89.3-million tonnes, grading 0.84 g/t for 2.4-million ounces of contained gold.

A prefeasibility study (PFS) completed on the project has concluded that it is technically and financially viable.

The PFS envisages the development of a 7.5-million-tonne-a-year openpit mining operation, with a conventional carbon-in-leach facility.

Gold production of 1.95-million ounces is forecast over a mine life of 10.5 years.

Principal project infrastructure includes access roads, a 142-person accommodation facility, a borefield, a tailings storage facility and an electrical power supply.

Value
Total capital expenditure is estimated at $326.4-million.

Duration
A development decision is expected by the end of 2013.

Engineering, procurement and construction of the mine, plant and associated infrastructure have been estimated at 21 months, leading to gold production that will start at the beginning of the fourth quarter of 2015.

Mining will start six months prior to production to provide waste rock for the construction of the run-of-mine ore pad and tailings storage facility; in addition, about 160 000 t of ore will be produced during this period to facilitate plant commissioning.

A three-month ramp-up period has been allowed for the plant, during which time an estimated 1.4-million tons of ore will be processed, with 50 000 oz produced.

Latest Developments
An updated economic assessment of the Bullabulling project has revealed “substantial” cash cost savings, an extended mine life and increased gold production.

Based on a revised openpit design and mining plan developed during the initial phase of the definitive feasibility study (DFS), the assessment forecasts gold production of 2.1-million ounces over a 12-year life-of-mine, at an average C1 cash cost of $843/oz, and total all-in cash cost of $930/oz.

The PFS estimated gold production of 1.95-million ounces over 10.5 years at an average C1 cash cost of $891/oz.

To extend the mine life, increase gold production and improve the efficiency of the pit design, the ongoing DFS will re-evaluate the relocation of the highway and power transmission lines – midway through the scheduled mine life – to enable amalgamation of the Phoenix, Edwards and Bonecrusher pits.

The assessment has maintained the PFS’s A$326.4-million capital cost estimate for fixed plant and infrastructure, but the DFS will review and refine the estimate.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Bullabulling Gold, tel +61 8 9386 4086 or fax +61 8 9389 8327.