Name and Location
Thunderbox gold project, Australia.

Client
Saracen Mineral Holdings.

Project Description
A feasibility study on Stage 1 of the Thunderbox operations has shown robust economics over an initial 4.5-year mine life. It further envisages the development of a large openpit on the Thunderbox deposit, delivering 597 000 oz.

The start of mining will coincide with the completion of the Whirling Dervish openpit, allowing for a seamless integration between operations.

Several opportunities exist to extend the project life beyond Stage 1, including a bulk underground mine at Thunderbox and satellite openpit opportunities.

Stages 2 and 3 could potentially extend production to more than one-million ounces over an eight-year mine life at an average production rate of 126 000 oz/y.

Net Present Value/Internal Rate of Return
Stage 1 has a net present value, at an 8% discount rate, of A$120-million and an internal rate of return of 59%.

Value
A$65-million.

Duration
The project was slated to produce its first gold in June 2016.

Latest Developments
The Thunderbox gold project has poured its first gold, paving the way for Saracen to double its production rate to about 300 000 oz/y.

The first gold pour at Thunderbox comes about ten months after the board approved the development.

The company has funded the project’s development from in-house cash flows generated by its Carosue Dam project, also in Western Australia.

The commissioning of the project continues with the plant fully operational and ramping up to nameplate capacity of 2.5-million tons a year. About 210 000 t of commissioning ore, grading 0.9 g/t, is currently stockpiled on the run-of-mine pad.

Beyond the initial openpit mine life of about five years, Thunderbox has promising underground potential. Drilling planned for later in 2016 aims to define a long-term underground mine, which will potentially extend the project life beyond ten years.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project is ahead of schedule and within budget.

Contact Details for Project Information
Saracen Mineral Holdings, tel +61 8 6229 9100 or fax +61 8 6229 9199.