PERTH (miningweekly.com) – The feasibility for the Tarcoola gold project, in South Australia, has delivered positive results, owner WPG Resources reported on Friday.

The feasibility study estimated that a capital expenditure of A$16.7-million would be required to support an annual production of 20 000 oz of gold, over a mine life of three years. The project has been slated to start in 2016.

Some 350 000 t/y of ore would be mined with gold recoveries expected to average 81%.

The study estimated an average all-in sustaining cost of A$1 088/t, while a pre-tax net present value of A$12-million has been ascribed.

“We are delighted with the results of the feasibility study which supports our belief in the underlying quality and inherent value of the Tarcoola gold project,’ said WPG executive chairperson Bob Duffin.

“The results indicate we have an affordable gold project complete with key operating, processing and infrastructure solutions, at cost levels providing significant leverage to current and projected gold prices. The project has considerable growth potential through further exploration, with substantial synergies between the project and our adjacent Tunkillia gold project.”

The feasibility study was based on a resource of some 973 000 t, grading 3.12 g/t gold for 97 540 oz of gold, and a reserve of 900 000 t, grading 2.6 g/t gold for 74 000 oz.

Duffin noted that within 18 months of acquiring the Tarcoola project, WPG had been able to develop the project to feasibility study level, which had built on the company’s confidence that a decision on progressing the project would be made by the end of this calendar year, with the objective of starting construction by early 2016, subject to financing and regulatory approvals.

“The feasibility study’s excellent financial metrics provide a strong basis which will enable a range of financing options for the project to be investigated.

“There has been strong interest from various financial institutions and potential project partners in the progress we have made at Tarcoola, and we anticipate that these discussions will be enhanced with the release of this summary of the feasibility study.”