Name and Location
Central Murchison gold project, Australia.

Client
Metals X.

Project Description
Following the acquisition of the Meekatharra gold operations as a bolt on to Metals X’s Central Murchison gold project, in Western Australia, in mid-2014, the company has been re-evaluating its development strategy for the project.

The dynamics and development options for the project have changed significantly with the new addition of a two-million-tonne-a year processing plant and significant operational infrastructure.

The expanded project contains 72 separate mineral resources as mining opportunities.

The project has a total mineral resource estimate of 128-million tonnes grading at 2.1 g/t of gold, with an inferred resource of five-million tonnes grading at 4 g/t of gold included in the development plan. The project has a total ore reserve of 21.3-million tonnes grading at 3 g/t gold.

Metals X has devised a development strategy to initially develop these mineral resources in a systematic fashion, with an overall objective to establish long-term and sustainable production from the major underground mines within the package.

The revised feasibility study envisages an initial development plan with a 13-year mine life, averaging gold production of 196 000 oz/y in the first ten years. This compares with the 11-year mine life forecast in the 2013 feasibility study and estimated gold production of 95 000 oz/y.

Net Present Value/Internal Rate of Return
The revised feasibility study estimates a pretax net present value (NPV) at a discount rate of 8% of $636.25-million and internal rate of return of 364%, with a simple payback of 1.5 years. This compares with a pretax NPV of $141.9-million in the 2013 feasibility study.

Value
Total capital costs are estimated at A$266.8-million.

Duration
The feasibility estimate assumes that active mining operations will start in July, with first ore processing in October.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Metals X, tel +61 8 9220 5700, fax +61 8 9220 5757 or email reception@metalsx.com.au.