Name of the Project
KCGM mill optimisation project.

Location
Kalgoorlie, Western Australia.

Project Owner/s
Northern Star Resources.

Project Description
KCGM is one of the world’s biggest and most significant gold mines, with a mineral resource of 27.4-million ounces and an ore reserve of 11.9-million ounces.

The mill optimisation prefeasibility study (PFS) envisages gold production growth of between 100 000 oz/y and 200 000 oz/y.

Several options have been considered and evaluated in the PFS, including:

• maintaining the 13-million-tonne-a-year milling capacity (steady state), which remains firmly on the table.

• expanding the milling capacity to 17-million tonnes a year, which involves a bolt-on expansion.

• expanding the milling capacity to 24-million tonnes a year, which involves a 70% process plant refurbishment.

• expanding the milling capacity to 22-million tonnes a year milling capacity, which requires a full rebuild (greenfield process plant).

Permitting will be required for all expansion options.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
At a gold price of A$2 250/oz, the project has an internal rate of return of between 13% to 26% and a payback of three to five years. At a gold price of A$2 600/oz, the project has an internal rate of return of between 16% to 31% and a payback of two to five years. The project has shown a substantial increase in the net present value.

Capital Expenditure
The project will require estimated capital expenditure of between A$440-million and A$1.4-billion.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Northern Star Resources, tel +61 6188 2100 or email info@nsrltd.com.