PERTH (miningweekly.com) – An independent study into the restart of the Eureka gold project, in Western Australia, has proven that it could be a viable cash flow opportunity for owner Tyranna Resources.
The restart study estimated that some 2 000 oz of gold could be recovered over a one-month mine life, generating free cash flows of some A$1.6-million. The project will likely require a capital investment of A$600 000 to allow for a restart, Tyranna said on Friday.
“The results of the mining study as an early mining opportunity demonstrates the potential to generate good free positive cash flow for the business with minimal upfront capital delivery and a very good cash margin over a short period,” said MD Bruno Seneque.
“We plan to generate cash flow to self-fund exploration to grow our assets at Eureka with minimal shareholder dilution. Plans are under way to secure a funding solution that will enable Tyranna to commence mining at Eureka and in the meantime, mining approvals will be fast-tracked, mining and haulage contractors appointed, and negotiations with the preferred toll treaters will be concluded.”