Name of the Project
Simberi sulphide gold project.

Location
Simberi Island, in the province of New Ireland, Papua New Guinea.

Project Owner/s
Gold miner St Barbara.

Project Description
A feasibility study has highlighted a robust project with strong financial returns.

Key changes from the 2020 prefeasibility study (PFS) include an increase in nameplate capacity.

The mill throughput has increased from 2.7-million tonnes in the 2020 PFS to three-million tonnes a year in the feasibility study, with an option to expand to 3.7-million tonnes a year.

Average sulphide gold production has remained the same at 160 000 oz/y.

The project’s mine life has decreased from 15 years in the 2020 PFS to 11 years in the feasibility study.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $320-million at $1 500/oz, compared with $233-million at $1 350/oz in the PFS 2020.

The pretax internal rate of return is estimated at 52%, compared with 63% in the 2020 PFS.

The pretax payback has increased from two years in the 2020 PFS to three years in the feasibility study.

Capital Expenditure
Capital expenditure has increased to between $130-million and $150-million in the 2020 PFS to between $160-million and $170-million in the feasibility study.

Planned Start/End Date
First sulphide ore is scheduled for 2024, compared with 2023 in the 2020 PFS.

Latest Developments
St Barbara has announced that it has started discussions with several interested parties that have expressed interest to acquire the Simberi asset.

Speaking on the sidelines of the Diggers and Dealers conference on August 2, St Barbara CFO Lucas Welsh said that a data room on the project had been open, and interested parties had been allowed access.

St Barbara announced a strategic review of the Simberi operations in June, deferring a final investment decision on the sulphide expansion project as project costs balloon, with Welsh saying that the review was focused on the fit of Simberi within the company’s portfolio.

The review is expected to take six months to complete.

Meanwhile, the social- and environmental-impact statement for the sulphide project at Simberi have been approved by the Conservation and Environmental Protection Authority.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
St Barbara, tel +61 3 8660 1900 or email info@stbarbara.com.au.