PMI looking at funding options for Ghana gold project
PERTH (miningweekly.com) – ASX- and TSX-listed gold developer PMI Gold Corporation expects to take a final investment decision on its Obotan project, in Ghana, before year-end, subject to securing project financing.
Speaking on the last day of the Africa Downunder conference, PMI chief operations officer Mike Gloyne stated that the company was currently working on a number of funding options for the Obotan project, while also looking to drive down project costs.
“Project finance is the biggest hurdle at the moment,” he told delegates.
A 2012 feasibility study indicated that the Obotan project would require a capital investment of some A$300-million to develop an operation delivering some 221 500 oz/y over an initial five-year operation.
At a gold price of $1 300/oz, the Obotan project would deliver a revenue of some $2.9-billion, have a net present value of $614-million and an internal rate of return of 35%.
Project construction was scheduled to start in 2014, Gloyne said, with full production expected by the first half of 2015. The miner was also currently awaiting the approval of its environmental-impact statement, which was submitted to the state government during the third quarter of this year.
“We are also looking to grow the resources at Obotan, and are targeting additional resources within a 15 km radius of the project,” he said.
The Obotan project currently has a proven and probable reserve of 34.2-million tonnes at 2.21 g/t gold for some 2.43-million ounces of contained gold.
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