PERTH (miningweekly.com) – Gold developer Big River Gold has flagged potential capital cost savings for its Borborema gold project, in Brazil.
The ASX-listed company on Tuesday told shareholders that it had completed an option study reviewing and optimising the process plant design for the gold project.
While no changes were proposed for the process circuit, changes have been recommended to some equipment selection and the plant layout to facilitate future throughput expansions with minimal disruption to production.
A 2020 updated definitive feasibility study for the project, based on a two-million-tonne-a-year operation, had estimated a capital requirement of $98.5-million to develop Borborema, which included an $11.5-million contingency.
The option study has now estimated the total capital cost for the project would likely be closer to $94.6-million, including a $15-million contingency.
Big River told shareholders that the company would increase confidence in the option study cost estimates over the coming weeks, with the revised equipment specifications provided to secure quotes from prospective suppliers.
“We are very pleased with the results of the option study as it leads to a more efficient use of capital and a strong basis for future expansion studies,” said executive chairperson Andrew Richards.
“We also anticipate some encouraging outcomes as we move to establish more precision on the costing over the coming weeks.”
With the completion of the option study, and subject to further costing work, Big River would update the project’s financial model and would resume discussions with potential financiers in the coming weeks.
The company would also look to de-risk the project further with detailed front-end engineering design (FEED), by progressing infrastructure development, and by advancing exploration and resource definition activities.
“Despite the delays in securing finance during 2020, due in large part to difficulties related to the pandemic, the company considers itself to be in an excellent position moving forward given the funds raised in December,” said Richards.
“The company will not only resume the process of securing project finance but has sufficient cash reserves to significantly advance the project with detailed FEED engineering and infrastructure development in parallel with the process. These are areas that are normally only able to be progressed once project finance has been secured.”