Name of the Project
Mount Bundy gold project.

Location
Northern territory, Australia.

Client
Primary Gold.

Project Description
A scoping study on the Mount Bundy gold project has proved positive.

The project includes three previously mined gold deposits – a large-scale openpit operation at Rustlers Roost, a smaller operation at the Quest 29 openpit and a high-grade underground mine at Toms Gully. The project includes an exploration portfolio that covers more than 1 500 km² of prospective ground.

The project has total indicated and inferred mineral resources of 26.88-million tonnes grading 1.5 g/t gold. Based on the potential mining inventory, an operation with an initial life-of-mine of nine years is envisaged. Total mine production is estimated at 26.9-million tonnes – 25.8-million tonnes from openpit production and 1.15-million tonnes from underground production.

Total gold recovered has been estimated at 86% delivering 824 000 oz of gold. Peak production will be between years 2 and 4, where more than 386 000 oz of gold will be recovered. The Rustlers Roost and Quest 29 openpits will together recover an estimated 620 000 oz of gold and the Toms Gully underground mine 204 000 oz of gold.

The scoping study envisages the construction of a new three-million-tonne-a-year gold treatment plant producing an estimated average at 13 000 oz/y of gold in the first three years.

The plant will be located adjacent to Rustlers Roost.

The potential Rustlers Roost mine area openpits will yield about 26-million tonnes of lower-grade material, which will likely provide the base feed for a treatment plant. Given the higher volume and lower grade of material that may be mined from the openpits (compared to Toms Gully), it follows that any treatment facility may be optimally located close to the Rustlers Roost openpits.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The estimated capital cost for the construction of a three-million-tonne-a-year treatment facility and associated infrastructure at a scoping study level is $130-million, with an additional $25-million capital for underground development at Toms Gully.

Duration
Not stated.

Latest Developments
Primary Gold considers that the results of the scoping study justify the project progressing to the prefeasibility study stage.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Primary Gold, tel +61 8 6143 6700, fax +61 8 9388 8824 or email info@primarygold.com.au.