De Grey puts parameters on Mallina
PERTH (miningweekly.com) – Junior De Grey Mining will advance to prefeasibility studies (PFS) at its Mallina gold project, in Western Australia, after a scoping study proved the project economics.
The scoping study estimated that gold production would reach some 473 000 oz/y for the first five years of operations, and some 427 000 t/y over the ten-year mine life.
Average all-in sustaining costs have been estimated at A$1 111/oz in the first five years, to some A$1 224/oz over the current ten-year evaluation period, placing Mallina in the lowest quartile of Australian gold producers.
The ten-million-tonne-a-year plant is expected to require a capital investment of some A$835-million, De Grey said on Tuesday, with the scoping study estimating a pre-tax net present value of A$2.8-billion and an internal rate of return of some 60%.
The scoping study provides an initial evaluation of the project’s physical and financial metrics following the discovery of Hemi in February 2020 and the definition of Hemi’s maiden mineral resource estimate of 6.8-million ounces in June 2021,” said De Grey MD and CEO Glenn Jardine.
“The results of the initial evaluation of the project are compelling and confirm its status as a Tier 1 gold asset. The company sees further improvements and optimisation of the project with ongoing resource extension and definition drilling and exploration success. This could increase production rates and/or the mine life of the project.”
“The study provides justification that the Mallina gold project is commercially viable and accordingly the board has approved progression of the project to a PFS,” said Jardine.
“The PFS will immediately commence in parallel with ongoing resource extension and definition drilling, exploration activities and further metallurgical testwork. The results of the PFS are expected to be provided in the second half of calendar year 2022.”
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