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 project 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 addition of a new two-million-tonne-a year processing plant and significant operational infrastructure.

The expanded project now contains 72 separate mineral resource mining opportunities and has a resource of about 8.5-million ounces and a reserve of 2.05-million ounces.

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 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 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
Metals X has awarded a three-year underground mining and services contract for its Paddy’s Flat gold mine, which forms part of the larger Central Murchison gold project, to Australian Contract Mining.

Work at the underground operation is expected to start in September.

The Paddy’s Flat underground mine is the first of several underground operations planned to start in a sequential manner at the Central Murchison gold project. Openpit mining started in June and the process plant is expected to start operating in October.

Metals X in January announced a revised development strategy for the Central Murchison project, following the acquisition of the Meekatharra gold operation as a bolt-on project. The acquisition added a two-million-tonne-a-year processing plant and significant operational infrastructure.

Key Contracts and Suppliers
Australian Contract Mining (underground mining and services contract).

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.
Australian Contract Mining, tel +61 8 9322 3488,  fax +61 8 9322 3188 or email acmining@iinet.net.au.