Name of the Project
Mount Mackenzie gold project.

Location
Bowen basin, in Queensland, Australia.

Project Owner/s
Resources & Energy Group.

Project Description
A scoping study has highlighted a strong case for the development of an opencut gold mining operation and the processing of three gold resources – North Knoll, South West Slopes and Lode 355 – within the project area, with scope for growth in the resource by targeting the extent of the untested primary ore.

The scoping study investigated a range of production and processing options and has identified a 300 000 t/y opencut development, with an on-site gold plant as the most appropriate case for the progression of the project to feasibility study.

The processing plant is proposed to be a low-cost modular crushing, grinding and carbon-in-leach circuit.

The scoping study incorporates indicated and inferred resources of 2.37-million tonnes grading 1.31 g/t gold for 100 000 oz of contained gold and 2.37-million tonnes grading 8.2 g/t silver for 624 000 oz of contained silver.

Gold and silver production is estimated at 43 200 oz and 242 400 oz respectively over a 43-month period.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Project capital expenditure is estimated at $13-million.

Planned Start/End Date
Not stated.

Latest Developments
Resources & Energy Group is reviewing its Mt Mackenzie gold/silver project to incorporate a higher gold price.

The company has restarted the scoping study using a gold price of A$2 600/oz, which has resulted in an increase of the projected free cash flow from A$30.5-million to A$54.6-million, while operating cash flow is projected to be A$67.6-million.

The company has now initiated a revised mineral resource estimate, pit optimisation and life-of-mine scheduling for a 500 000 t/y development option using the revised gold price.

This review will be released shortly, the company has said.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Resources & Energy Group, tel +612 92278900 or email communications@rezgroup.com.au.