Name of the Project
Mount Morgan gold/copper project.

Location
The project is part of the historical Mount Morgan mine located in central Queensland, Australia.

Client
Carbine Resources.

Project Description
Mount Morgan has total indicated and inferred resources of 37.2-million tonnes grading 0.71g/t gold for 850 000 oz, comprising 394 000 oz in the indicated category and 456 000 oz in the inferred category. 

A feasibility study completed on the project has delivered a strong base case for the development of a long-life operation.

Based on a 1.1-million-tonne throughput rate, the project is expected to have a mine life of nine-and-a-half years producing 30 000 oz/y of gold and 3 800 t/ of copper sulphate.

The estimated 9.9-million-tonne ore reserve grading at 1.19 g/t gold is associated with just four of the historical tailings dumps at Mount Morgan – Mundic Gully, Red Oxide, No 2 Mill and Shepherds – delivering gold, copper sulphate and premium unroasted iron pyrite concentrate to market.

Each of the four tailings dumps will be mined using conventional openpit mining methods. The ore (tailings) is free digging and the mine plan has taken into account the various waste walls and overburden required to be mined in conjunction with the tailings to ensure that they can be successfully mined and transported to the processing plant.

The project’s life could be extended to about 20 years, as a substantial inferred mineral resource exists within the remnant tailings in the Sandstone Gull and Mount Morgan openpit.

The expanded case will result in the production of about 18 000 oz of gold and 2 000 t of copper sulphate during years 10 and 20 of the mine life.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a payback of two years.

Value
The preproduction capital cost for the base case and the expanded case will remain consistent at A$85.1-million; however, the overall capital required for the base case over the life-of-mine is estimated at A$94.4-million, and at A$116.1 for the expanded case.

Duration
Not stated.

Latest Developments
The Queensland Minister of Natural Resources and Mines has granted final heritage approval to the Mt Morgan gold/copper project.

The approval is another milestone for the project – the first of three major approvals required for the project.

The outstanding regulatory approvals for the development of the Mt Morgan project are an environmental authority amendment and a regional interest development approval.

Key Contracts and Suppliers
None stated.

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.