Name of the Project
Simberi sulphide project.

Location
The project is located on Simberi Island, the northernmost island in the Tabar group of islands in the province of New Ireland – the easternmost province of Papua New Guinea (PNG).

Project Owner/s
St Barbara Limited.

Project Description
A prefeasibility study (PFS) has confirmed that the project could extend mine life at Simberi to 2035. The PFS is based on a PFS completed in 2016.

The project has sulphide ore reserves as at December 31, 2019, estimated at 24.9-million tonnes grading 2.3 g/t gold for 1.82-million ounces of contained gold. Oxide reserves are estimated 9.4-million tonnes grading 1.1 g/t gold for 346 000 oz of contained gold.

The PFS has been scoped to focus on low capital-expenditure solutions that use existing infrastructure on Simberi Island, including the airport, power station, village and wharf. The existing semiautogenous grinding mill will be used in a new plant flowsheet, maintaining the ability to separately process oxide and sulphide ores.

The PFS indicates the production and sale of a concentrate as the preferred option, which avoids the requirement to establish downstream processing on the island.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax payback period, from the start of the two-year construction period, of about four years.

Capital Expenditure
Capital expenditure is estimated at between $130-million and $150-million.

Planned Start/End Date
The PFS estimates a two-year construction period, starting in the third quarter of the 2021 financial year.

Latest Developments
St Barbara Limited plans to undertake a feasibility study on the project, supported by robust financial metrics indicated by the updated PFS.

To minimise interruption to production, a decision to proceed on the sulphide project is planned for the March quarter of the 2021 financial year. It is envisaged that further optimisation and value engineering activities will continue on the project to support a possible future investment decision, including further investigation into the optimal balance between grinding and flotation time to maximise recovery.

Key Contracts and Suppliers
None stated.

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