PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Okvau gold project, in Cambodia, has improved project economics and output.

ASX-listed Emerald Resources on Monday reported that for a capital cost of $98-million, the Okvau project could be developed into a two-million tonne a year operation, delivering around 106 000 oz of gold over an initial mine life of seven years.

This was compared to the prefeasibility study, completed in 2015, which estimated that the project would require a capital investment of $120-million to deliver some 91 500 oz/y over a mine life of eight years.

The DFS estimated that the project will have a life-of-mine C1 cash cost of $650/oz, and will have a pre-tax net present value of $223-million and an internal rate of return of 48%.

Emerald MD Morgan Hart told shareholders that the company had delivered a maiden ore reserve of just under one-million ounces of gold for the Okvaue project, along with a DFS that demonstrated the economics of the project, all within just 12 months of Emerald becoming formally involved in the project.

‘The results of the DFS, including a pre-tax net present value of around A$300-million with an internal rate of return of 48%, vindicates Emerald’s decision to acquire 100% ownership of this project.”

Hart pointed out that the Okvau project would be the first large-scale gold project to be developed in Cambodia, adding that the first-mover status would result in a number of growth opportunities, with the project potentially increasing in scale and mine life.

Emerald was hoping to start project development in the fourth quarter of this year, with first production targeted for early 2019.

The company will now focus on procuring project approvals and permitting, as well as to secure the required project funding. Emerald will also focus on further cost saving measures to reduce operating and capital cost estimates, and would look to optimise openpit staging and scheduling.