Camel Creek proves positive for JV partners
PERTH (miningweekly.com) – A preliminary scoping and economic assessment of the Camel Creek gold joint venture (JV) between ASX-listed Northwest Resources and Millennium Minerals has confirmed the project’s economic potential.
The scoping study confirmed that the Camel Creek project had the ability to deliver significant cash flows, with the project holding a net present value of some A$13.9-million and an internal rate of return of 1 152%.
Northwest’s Camel Creek project is located near the Nullagine goldfield, and hosts four near-surface, low-grade deposits with a total Joint Ore Reserves Committee-compliant resource of 105 000 oz of gold.
Under the terms of the JV agreement, Millennium would manage, mine and process the Camel Creek JV, using infrastructure from its nearby Nullagine mine. The parties were each entitled to 50% of the gold production from the JV, and would share the operation costs.
Northwest said on Tuesday that the catalyst for the Camel Creek scoping study was the start of commercial gold production from Millennium’s Nullagine treatment plant in February this year, which followed first gold pour in October last year.
Since commissioning, Millennium’s mining, milling and recovery rates have been consistently above its feasibility forecasts.
Northwest noted that a small amount of work was required to be completed over the JV area to complete a maiden ore reserve, which would confirm the economic development case for Camel Creek.
The scoping study predicted that the Camel Creek project could deliver some 49 360 oz of gold over a 32-month life-of-mine, based on the current resources. The JV deposits would be mined after Millennium’s Golden Gate satellite deposits, but before any of the company’s other satellite deposits.
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