Rothsay requires A$20m to start - EganStreet
PERTH (miningweekly.com) – A scoping study has found that the Rothsay gold project, in Western Australia, could deliver 106 000 oz of gold over a nearly four-year initial mine life.
ASX-listed junior EganStreet Resources said on Tuesday that the project would likely require a capital investment of A$20.4-million, with life-of-mine cash costs estimated at A$907/oz and all-in sustaining costs at A$1 056/oz.
EganStreet MD Marc Ducler commented that the scoping study presented an economically attractive potential gold project, with a low capital requirement to first gold production.
“The high-grade nature of the deposit enables an anticipated low cash cost of some A$900/oz. The short construction timeframe of approximately six months for the purpose-built process plant ties in well with timing on the portal and decline rehabilitation in order for the underground to deliver first ore to the plant six months after commencement.”
The project is expected to have a life-of-mine operating cash surplus of A$26.7-million from revenues of A$161-million, and a net present value of A$21.4-million and an internal rate of return of 40%, at a gold price of A$1 600/oz.
Ducler said that EganStreet was confident that the strong technical and economic aspects of the project would enable the company to secure the required funding.
“Our strategy moving forward is focused on the feasibility study that we expect to deliver in the second half of 2017. The feasibility study will include results from our current drill programme, which has been designed to infill the portion of inferred resources that are included in this study, and may increase confidence such that they can be upgraded to indicated.”
Some 73% of the total production target is currently classified as indicated, with the remaining 25% classified as inferred.
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