Southern Cross eyes higher output and lower costs at Marda
JOHANNESBURG (miningweekly.com) – A review of the feasibility study on ASX-listed Southern Cross Goldfields’ Marda project, in Western Australia, has increased the project's production capacity while lowering its capital cost.
An initial feasibility study, conducted in 2012, estimated that some A$38-million would be required in preproduction capital, with the project producing some 35 000 oz/y over a near five-year period.
However, a review of the feasibility study has concluded that preproduction costs could be decreased to A$24-million, while production could increase to 50 000 oz/y, over a life-of-mine of three-and-a-half years.
The project’s net present value (NPV) has also increased from an initial A$13-million to some A$41-million, while the NPV has increased from 24% to 90%.
“The combination of robust and sustainable economics, near-term production and the underexplored nature of this project makes the Marda gold project one of the most attractive development opportunities in Australia,” said Southern Cross MD Frank Terranova.
“The merger of Southern Goldfields and Polymetals Mining in 2013 ensured that a proven team with a successful track record in project development and asset optimisation would add value to the Marda project. The revised feasibility study is the first step in this,” he said.
Terranova said on Tuesday that the company was now ready to submit its mining proposal and associated mine closure plan to the Department of Mining and Petroleum for consideration and approval.
Approvals to start development work were expected in the second quarter of 2014. Mining would start in October 2014, with first gold expected in the first quarter of 2015.
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