New study gives hope to Sandstone
PERTH (miningweekly.com) – An independent re-optimisation study on the Sandstone gold project, in Western Australia, has proven that the plant could be profitably refurbished using feed from ASX-listed Middle Island’s existing mineral resource.
The study used a range of contemporary gold prices and revised slope parameters, while maintaining the basis of a 2016 prefeasibility study (PFS).
The Two Mile Hill, Shillington and Wirraminna openpit deposits were included in the re-optimisation study, while only the Two Mile Hill and Shillington deposits were considered in the initial PFS, which at the time found that while successful on an operational basis, the economics of the Sandstone project were insufficient to support the capital required to recommission the project.
Middle Island on Friday said that the PFS will now be updated in the current quarter, with a view to re-commission the Sandstone processing plant on a standalone basis.
Mining consultants GR Engineering Services have confirmed that the processing plant could be refurbished within a 16-week timeframe from the start of site work, at a cost of A$10.3-million.
Middle Island told shareholders that discussions have now started on financing the plant refurbishment and the recommissioning, while permits are already in place to start mining once the plant is recommissioned.
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