Name and Location
Marda gold project, Australia.

Client
Southern Cross Goldfields.

Project Description
The Marda gold project, located about 400 km north-east of Perth, is based on a 495 000 oz gold resource grading 1.9 g/t and a 175 000 oz reserve grading 2.3 g/t.

It is expected that the Marda project’s production base load will comprise material mined from the Python, Dugite, Dolly Pot and Goldstream deposits at Marda Central, complemented by higher-grade material from satellite deposits such as King Brown, Golden Orb and Battler.

The project’s feasibility study envisages an opencut mining operation producing an estimated 167 000 oz of gold over four years.

The first phase will focus on Marda Central, which comprises the gold processing plant, tailings facility, accommodation camp and six pits. Mining of these pits will provide feed for the processing plant for the first 2.5 years of project life. This equates to 67% of current reserves.

According to the feasibility study review completed in December 2013, Marda ore is amenable to conventional gold processing processes comprising crushing, grinding, carbon-in-leach processing and gold recovery. Gravity concentration is also planned to maximise the recovery of gold and minimise processing costs.

A 1 800 kW ball mill is planned to be installed in the circuit to enable the required processing rate of 720 000 t/y.
Tailings will be stored in a conventional paddock-style tailings dam located adjacent to the facilities at Marda Central.

A mining proposal to support the development of further pits is expected to be submitted to the Western Australian Department of Mines and Petroleum in due course.

Net Present Value/Internal Rate of Return
According to a feasibility study review on the project released in December 2013, the project has a net present value using a discount rate of 10% a year of $41-million at a gold price of A$1 350/oz and an internal rate of return of 90%.

Value
Preproduction capital is estimated at $24-million and capital costs are estimated at $31.2-million.

Duration
The project was slated for development by 2017.

Latest Developments
The Western Australian government has given its approval to Southern Cross Goldfields to proceed with the development of its Marda gold project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Southern Cross Goldfields, tel +61 7 3236 2511, fax +61 7 3221 6625 or email admin@scross.com.au.