Bullabulling to produce more, cash costs fall
JOHANNESBURG (miningweekly.com) – Aim- and ASX-listed Bullabulling Gold said on Monday that an updated economic assessment of its namesake project in Western Australia had revealed “substantial” cash cost savings, 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 forecast 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 prefeasibility study (PFS), which determined that Bullabulling was technical and financially viable, estimated gold production of 1.95-million ounces over 10.5 years at an average C1 cash cost of $891/oz.
“We will now turn our attention to other areas of the project, where there is potential to improve costs and deliver more gold, confident that attention to detail and focus on efficiency will continue to get results,” said MD Brett Lambert.
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.
To extend the mine life, increase gold production and improve the efficiency of the pit design, the ongoing DFS would re-evaluate the relocation – midway through the scheduled mine life – of the highway and power transmission lines to enable amalgamation of the Phoenix, Edwards and Bonecrusher pits.
The assessment maintained the PFS’s A$326-million capital cost estimate for fixed plant and infrastructure, but the DFS would review and refine the estimate.
Lambert concluded that the project would generate net cash flow of $564.5-million over the scheduled mine life.
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