A prefeasibility study (PFS) on ASX-listed Predictive Discovery's Bankan project, in Guinea, has confirmed that the project is one of the largest discoveries in West Africa and potentially also a future tier-one mine, MD Andrew Pardey says.
The project is expected to produce about 269 000 oz/y of gold over a 12-year mine life, at an all-in sustaining cost (AISC) of $1 130/oz.
The PFS estimates the required capital expenditure to develop the mine at $456-million.
"The Bankan gold project has developed into a company-defining and globally significant gold project. Importantly, the PFS includes a maiden ore reserve estimate of 3.05-million ounces, representing 74% conversion of the indicated mineral resource,” Pardey points out.
“Financial metrics are strong, with a post-tax net present value (NPV) at a discount of 5% of nearly $1.4-billion and an internal rate of return (IRR) of 42% at current gold prices. Financials remain robust at the conservative PFS base case price assumption of $1 800/oz, with an NPV of $668-million and IRR of 25%. The upfront capital cost requirement of $456-million is very competitive and AISC of $1 130/oz deliver high profit margins,” he adds.
Pardey notes that there are still multiple project improvement opportunities that can materially enhance the technical and financial outcomes of the project.
"We intend to actively pursue these during the definitive feasility study. Part of this upside is the significant potential for additional deposits to be discovered close to the existing ore reserves and regionally within the broader permit package.
"Predictive Discovery is highly confident in growing the resource base and increasing the mine life beyond the current 12 years. We will continue to systematically pursue our near-resource and regional exploration programmes," he comments.