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Toms Gully proves golden for Primary

27th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A feasibility study on junior Primary Gold’s Toms Gully project, in the Northern Territory, has suggested that the underground operations could restart production by the September quarter of next year.

The feasibility study suggested that a capital investment of some A$19-million could see a mill upgrade at Toms Gully, to coincide with the start of mine production.

The project was expected to deliver some 65 000 oz/y over an initial five-year period, from a Joint Ore Reserves Committee-compliant reserve of 775 000 t, grading 6.9% gold.

Primary Gold MD Clay Gordon said on Tuesday that the company would seek to finance the project for an immediate start to refurbishment, with the view of restarting production by the September quarter of next year.

Gordon said that the board remained confident that funding for the project would be secured through debt or quasi-equity means.

“The feasibility study and maiden ore reserve results confirm Toms Gully has the potential to become a low-cost gold producer generating significant near-term cash flows. Toms Gully’s low production costs, short lead-time and low capital requirements compare very favourably to other gold projects in Australia and globally,” he said.

Gordon noted that near-mine exploration opportunities also meant that Primary had significant potential to increase the mine life beyond the current plan.

Edited by Creamer Media Reporter

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