Devon scoping study proves up for JV partners
PERTH (miningweekly.com) - An updated scoping study into the Devon Pit gold project, in Western Australia, has estimated that the project could produce 39 000 oz of gold over a 16-month period.
ASX-listed Matsa Resources on Wednesday said that based on a gold price of A$2 650/oz, the project would have a free cash flow of A$37.1-million, could generate revenues of A$100.5-million and would have an internal rate of return of 479%.
The scoping study estimated a life-of-mine (LoM) capital cost of A$5-million and an LoM operating cost of A$58.4-million.
“It is pleasing that the updated scoping study for the Devon Pit conducted by Linden illustrates delivery of strong margins for the Devon joint venture (JV) and improves on the April 2021 study conducted by Matsa,” said Matsa executive chairperson Paul Poli.
“Encouragingly, the grades reported in the updated study of more than 5 g/t compare favourably with the excellent historical grades reported by GME Resources in 2015 and 2016. Matsa now looks forward to the Devon JV progressing the definitive feasibility study, due for completion by the end of August 2023.”
The Devon JV is a 50:50 split profit share JV between Matsa Resources and Linden Gold Alliance Limited (Linden) with Linden being appointed the JV manager. Under the terms of the Devon JV, Matsa is free carried on a non-recourse basis for all costs associated with permitting, financing, development and mining of the Devon Pit with Linden required to meet certain milestones.
Subject to a positive feasibility study outcome, a final investment decision on Devon is due in late 2023.
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