Name of the Project
Okvau gold project.

Location
The project is located in the Mondulkiri province, in eastern Cambodia.

Project Owner/s
Renaissance Minerals, a wholly owned subsidiary of Emerald Resources.

Project Description
Okvau has an independent Joint Ore Reserves Committee-complaint indicated and inferred mineral resource estimate of 17.68-million tonnes grading 2.01 g/t gold, containing 1.14-million ounces at a 0.70 g/t gold cutoff.

The definitive feasibility study (DFS) is based entirely on probable reserves. Inferred resources, an estimated 7 000 oz within the final pit design, have not been included.

The DFS has confirmed the robust nature of the project, with an initial operating life-of-mine of more than seven years and production of about 106 000 oz/y of gold on average.

The deposit will be mined using conventional openpit mining methods from one pit at a relatively constant mining rate. Mining will be undertaken by drilling and blasting ore and waste, with loading and hauling being undertaken by a mining contractor.

The proposed processing plant has a throughput of two-million tonnes a year and will use a single-stage crushing circuit and semiautogenous milling circuit, sulphide flotation and a regrind mill, followed by conventional cyanide leaching.

Tailings from the process plant will be disposed of in a dedicated tailings storage facility (TSF). The TSF will be located within a broad shallow valley to the south-east of the openpit, comprising a primary embankment to the south and a saddle embankment to the west. The waste-rock dump will be located to the north and north-west of the TSF and will be adjacent to the TSF embankment to enhance the structural stability of the TSF.

The proposed TSF development concept contains the currently envisaged life-of-mine tailings and provision for freeboard to contain process water and stormwater inputs. Assuming a tailings settled density of about 1.40 t/m3, tailings production of 14.3-million tonnes will require a storage requirement of about 10.5-million cubic metres. The TSF has been designed to accommodate 17.8-million cubic metres, including freeboard.

The project has an initial operating mine life of 7.2 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
A review of the DFS, at a higher gold price of $1 450/oz, has increased the projected net present value of the project from $217-million to $337-million and the internal rate of return from 48% to 69%, compared with the original DFS, which was based on a spot price of $1 250/oz.

Capital Expenditure
Total development costs have been estimated at $98-million.

Planned Start/End Date
Not stated.

Latest Developments
The Cambodian Council of Ministers has approved the execution of a mineral investment agreement (MIA) with Emerald Resources for the Okvau gold project.

The MIA provides clarity and stability for the fiscal regime to develop and operate the gold project. It is a significant milestone, providing a level of shareholder and stakeholder assurance.

“The approval of a direct agreement with the Cambodian government for the development of the Okvau project is a significant milestone for Emerald and the people of Cambodia, as it is the first time this has been implemented for a large-scale mining project,” said Emerald MD Morgan Hart.

While Emerald will retain full ownership of the project, a 3% royalty will be payable to the Cambodian government on the gross sales from the project.

In turn, Emerald will benefit from an income tax rate of 25% a year for five years from the date of the MIA, with the tax rate increasing to 30% a year thereafter. The company will also have a withholding tax rate of 0% of payments of dividends paid to foreign affiliates for five years, after which the tax rate will be adjusted according to applicable laws at the time.

Emerald will also be granted an exemption from any import tax and duties on equipment, machinery, mining trucks, earth-moving equipment and other mine facilities that will be used for the Okvau project, if the import is done before the end of December 2022.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Emerald Resources, tel +61 8 9286 6300, fax +61 8 9286 6333 or email info@emeraldresources.com.au.