Name of the Project
Murchison gold project.

Location
Murchison region, Western Australia.

Project Owner/s
Meeka Metals.

Project Description
Murchison has an initial probable ore reserve of 4.1-million tonnes grading at 3.1 g/t gold for 410 000 oz.

A feasibility study has outlined an operation with gold production of about 80 000 oz/y over the first eight years, with peak production of 103 000 oz in Year 6.

Recovered gold production over 9.3 years – eight years mining, 1.3 years stockpile processing – is estimated at 663 000 oz.

The project is based on the development of a standalone, one-million-tonne-a-year carbon-in-leach processing facility.

The mineral resources that support the planned mines remain open at depth,

with strong opportunity to grow.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $249-million at $2 750/oz and $371-million at $3 000/oz. The internal rate of return is estimated at 40% at $2 750 and 56% at $3 000/oz.

Payback, following process plant commissioning, is estimated at $2 750/oz at 22 months and $3 000/oz at 16 months.

Capital Expenditure
Preproduction capital is estimated at A$137-million.

Planned Start/End Date
Not stated.

Latest Developments
Meeka is progressing all the remaining environmental studies required to permit the project, and is investigating opportunities to accelerate the project development timeline through the toll milling of higher-grade starter pits.

Meeka has also initiated discussions with several advisers specialising in debt finance.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Meeka Metals, tel +61 8 6388 2700 or email info@meekagold.com.au.