Name of the Project
Mallina gold project.

Location
Pilbara region of Western Australia.

Project Owner/s
De Grey Mining.

Project Description
A scoping study has determined that the Mallina gold project presents a potentially commercially viable development opportunity with significant upside.

The project has total measured, indicated and inferred mineral resources of 229.8-million tonnes grading 1.2 g/t gold.

The scoping study assessed three alternative throughput rates for the processing plant – 7.5-million tonnes a year, ten-million tonnes a year and 12.5-million tonnes a year. A ten-million-tonne-a-year plant was selected.

The scoping study envisages average gold production of about 473 000 oz/y at an average feed grade of 1.6 g/t gold over the first five years and about 427 000 oz/y at an average feed grade of 1.4 g/t gold over the ten-year scoping study evaluation period.

The project is expected to produce 4.6-million ounces of gold over ten years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of about $2.8-billion and internal rate of return of about 60%, with an unleveraged payback of about 1.5 years.

Capital Expenditure
Estimated capital cost for a ten-million-tonne-a year plant and site infrastructure is $835-million, inclusive of a 25% contingency.

Planned Start/End Date
Not stated.

Latest Developments
The board has approved the project to advance to a prefeasibility study, the results thereof are expected in the second half of 2022.

Key Contracts, Suppliers and Consultants
Majesso Consulting (independent mining cost estimate, based on a contractor mining strategy); and GR Engineering (independent assessment of the processing cost estimate at a throughput rate of 7.5-million tonnes a year).

Contact Details for Project Information
De Grey Mining, tel +61 8 6117 9328 or email admin@degreymining.com.au.