Name and Location
Kirkalocka gold mine restart project, Australia.

Client
Mount Magnet South.

Project Description
An optimised feasibility study on the restart of operations at the Kirkalocka gold mine, in Western Australia, envisages the development of an opencut mining operation and the use of an existing conventional carbon-in-leach/carbon-in-pulp (CIP) gold-processing plant, with an upgraded crushing circuit and related infrastructure to mine and process between 1.6-million tons and 2.2-million tons a year of gold ore from defined ore reserves of 10.4-million dry tons grading 0.9 g/t.

There are three primary stages in the proposed openpit design.

Stages 1 and 2, to the south and north respectively, will target mostly oxide ore and laterite ore. These pit stages are typically 80 m deep, with the deepest section 120 m below surface.

Stage 3 is centred on the highest gold-grade fresh basalt and tonalite ore zones, located in the central north of the ore reserve. This stage reaches a maximum depth of 240 m below surface.

The existing plant on site comprises a primary and secondary crusher, a single semiautogenous mill, and gravity gold recovery and CIP leach circuits.

The optimal process flow sheet design is represented by a staged approach, incorporating mechanical and electrical refurbishment of the existing treatment plant, the installation of an intensive cyanidation leach circuit in the gravity gold circuit and a new tertiary crushing circuit.

The planned yearly gold metal production for the first three years will be between 62 000 oz and 75 000 oz.

Value
As a result of this existing infrastructure at the Kirkalocka gold project, capital expenditure required for the restart of operations at the Kirkalocka gold project is relatively low.

Capital expenditure for Year 1 is estimated at $31.2-million.

A leading international investment bank is progressing with due diligence and facility documentation, with the finalising of debt funding arrangements expected in the second quarter of 2013

Duration
The development schedule forecasts a six-month period, from drawdown of the funding to completion of the plant refurbishment and the construction of an additional plant and associated infrastructure.

A three-month recommissioning period is then envisaged to achieve expected operating capacity.

The process plant will be recommissioned on lower-grade material during this initial project phase.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Mount Magnet South, tel +61 8 9213 8900 or fax +61 8 9213 8901.