Name of the Project
Tucano process plant upgrade project.

Location
Northern Brazil.

Client
Beadell Resources.

Project Description
A feasibility study completed on the Tucano processing plant has demonstrated the viability of the project. The study proposes the upgrade of the existing plant by incorporating an additional 6 MW ball mill, a high-rate thickener, another leach tank and an oxygen sparging system.

Throughput will be maintained at 3.6-million tonnes a year and recoveries are projected to increase to 93% from the current budgeted recovery of 88%.

As the mine deepens, there will be an increasing amount of sulphide ore, which will require a finer grind to achieve economic gold recoveries.

The new ball mill will allow for a grind size of 75 µm and will enable the mine to be fully optimised for any combination of sulphide and oxide ores. The finer grind requires longer residency in the leach circuit, which is facilitated by the additional carbon-in-leach tank. Throughput will remain at 450 t/h for a nominal annual throughput of 3.6-million tonnes.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has an incremental estimated post-tax net present value, at a 5% discount rate, of $127-million and an estimated internal rate of return of 138%, with a payback of 14 months.

Value
The preproduction capital cost is estimated at $27.6-million.

Duration
It is expected that the project will be commissioned in mid-2018.

Latest Developments
As a result of the robust results of the feasibility study, the board of directors has approved the plant upgrade and the project will start immediately. The project will be fully financed from the Treasury.The feasibility study was based on the ore reserves as at December 31, 2015.

On April 11 this year, Beadell Resources released an updated reserve statement as at December 2016, highlighting a 7% increase in ounces to 1.575 million ounces and a 9% increase in grade to 1.74 g/t gold. After depletion, the new ore reserves increased by 18%. The feasibility study and life-of-mine plan will be updated to incorporate the new ore reserve and the results of this will be released to the market in due course.

Key Contracts and Suppliers
Outotec Australia (ball mill and associated equipment).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Beadell Mines, tel +61 8 9429 0800 or email info@beadellresources.com.au.