PERTH (miningweekly.com) – A feasibility study into the Stage 1 development of the Boorara gold project, in Western Australia, has indicated the project to be financially viable, ASX-listed Horizon Minerals said on Monday.
The openpit operation is expected to produce 159 000 t of ore, producing 9 500 oz of gold over a six-month mine life, and at a capital cost of A$0.44-million.
The feasibility study was based on the toll milling of ore at Golden Mile Milling’s one-million-tonne-a-year Lakewood mill, which is located some 7 km from the Boorara operation.
The Stage 1 operation, which is based on the development of the Regal and Crown Jewel deposits, is expected to generate some A$5.8-million at the current gold price of A$2 350/oz, with C1 costs estimated at A$1 574/oz.
“The Boorara Stage 1 feasibility study has delivered robust economic results with strong projected cash margins and significantly reduced geological risk with grade control drilling completed ahead of a decision to mine,” said Horizon MD Jon Price.
“As with the successful Teal gold mine, the company has taken a conservative approach to both resource estimation and mine development parameters, adopting conservative cut-off grades, dilution and ore recovery to reduce risk and underpin strong future cash generation.
“The key drivers for developing Stage 1 of Boorara are to leverage off the current high gold prices to generate cash and to de-risk the larger scale development by confirming the tonnage and grade uplift demonstrated by the infill drilling and previous mining and milling reconciliations.”
Horizon will now finalise the mining proposal and project management plan for submission to the Department of Mines, Industry Regulation and Safety, while also finalising mining and haulage contracts in conjunction with project financing options for board approval early in the June quarter.
Once board approval has been given, mine development is expected to start in the June quarter.