Name and Location
Mount Morgan copper/gold project, Queensland, Australia.

Client
Carbine Resources.

Project Description
A prefeasibility study (PFS) completed on Mount Morgan has forecast potentially robust economics for the operation, and further improves on the results achieved in the scoping study completed November 2014.

The PFS defines a one-million-tonne-a-year operation over a minimum eight-year mine life that includes only the processing of known Joint Ore Reserves Committee (Jorc) resources at the site and not any of the current exploration targets.

The proposed operation will produce three separate saleable products – gold, copper and pyrite. Average production is estimated at 31 200 oz/y gold doré bullion, 3 200 t/y copper sulphate and 211 000 t/y of pyrite concentrate.

The operation is expected to produce an average of 46 500 oz/y of gold equivalent, including more than 58 000 oz/y of gold equivalent during the first three years of operations.

This high production during the initial years of operation ensures a relatively quick payback of capital costs and minimises financial risk. There is significant upside to mine life and production rates on conversion of some of or all the exploration targets to Jorc resources.

Net Present Value/Internal Rate of Return
Not stated.

Value
Capital expenditure (capex) has been estimated at A$63.3-million.

Capex is based on construction using all new equipment, including allowances for all engineering, procurement and construction management costs, and excluding commissioning, labour costs and contingencies.

Future feasibility studies will also assess options to reduce capital costs through further processing optimisation, leasing mobile and plant equipment, buying near-new used infrastructure and rationalising other major infrastructure.

Upside exists to reduce capital costs through the full or partial use of the Kundana carbon-in-pulp plant.

Duration
Not stated.

Latest Developments
Carbine will now progress the completion of a drilling programme at the Mount Morgan site before initiating a definitive feasibility study (DFS). The DFS will be used to confirm and refine the value proposition of the project through continued optimisation of the flowsheet and acquisition of more definitive equipment and reagent pricing.

The company will also undertake an assessment of the potential to raise early-stage financing for mine development based on the PFS.

Key Contracts and Suppliers
GR Engineering Services (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Carbine Resources, tel +61 8 6142 0986, fax +61 8 9388 8824 or email admin@carbineresources.com.au.
GR Engineering Services, tel +61 7 3838 8000, fax +61 7 3838 8001 or email gres@gres.com.au.