PERTH (miningweekly.com) – Gold miner Ramelius Resources has identified a A$24-million capital cost savings for its Tampia gold project, in Western Australia, on the back of a simplified processing solution, but has pushed back the project’s start date from mid-2020 to the start of the 2021 calendar year.

The miner on Thursday said that up-front capital for the project is now expected to be around A$26.4-million, down from the initial estimate of A$50-million.

The feasibility study is based on the haulage of ore from Tampia to Ramelius’ existing Edna May operation, removing the flotation and fine-grind processing facilities previously envisioned.

The feasibility study estimated that the updated project would produce 210 000 oz of contained gold, up from the 197 000 oz previously estimated, with all-in sustaining costs coming in slightly higher at A$1 167/oz, compared with the A$1 119/oz, while cash flows have increased from A$82-million to A$139-million on the back of a higher gold price.

The project’s net present value has also increased from A$67-million to A$116-million, while the internal rate of return has increased from 66.1% to 155.7%.

The start of development at Tampia has been pushed back as Ramelius continues negotiations with both landowners and the 10% minority owner to resolve incomplete arrangements with the previous tenement holders.

Meanwhile, Ramelius on Thursday updated its plans for its Eridanus openpit, at the Mt Magnet operation, in Western Australia, saying the pit has been mined to a depth of some 40 m, and will now be moved to a Stage 2 cut-back, while ore mining continues in Stage 1.

Once the Stage 2 cut-back catches up to the Stage 1 mining, the pit will then be progressed as a single pit to its design depth of 235 m. The potential for further openpit or underground mining beyond that point is currently the subject of a scoping study.

Ramelius has deferred publishing a life-of-mine plan in order to incorporate the high-grade Penny West gold project, which is being acquired as part of a takeover of fellow-listed Spectrum Metals.

Ramelius on Thursday also refined its full year production guidance for the full 2020 to between 210 000 oz and 220 000 oz, compared with the previous estimate of between 205 000 oz and 225 000 oz, with an all-in sustaining cost of between A$1 150/oz and A$1 250/oz expected.

The miner produced 51 825 oz of gold during the March quarter, with the Mt Magnet operation delivering 38 981 oz and the Edna May mine contributing 12 844 oz.