Name of the Project
Bird in Hand gold project.
Location
On the site of the historic Bird in Hand gold mine, in Adelaide Hills, South Australia.
Project Owner/s
Terramin Australia.
Project Description
The project has a Joint Ore Reserves Committee-compliant resource of 650 000 t at 12.6 g/t for 265 000 contained ounces of gold and 5.8 g/t for 122 000 contained ounces of silver.
The project will involve the underground mining of gold-bearing ore at the Bird in Hand site using mechanised cut-and-fill.
Conventional crushing and grinding, followed by sulphide and electrum flotation, has been selected as the processing method.
The feasibility study completed in 2021 estimates that, over a mine life of four years, the project could produce an average of 11 100 t/y of concentrate containing 44 700 oz of gold and 20 600 oz of silver.
Potential Job Creation
The project will create 300 jobs and 140 jobs in direct employment.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of A$141-million and an internal rate of return of 80.5%, with a payback of one year.
Capital Expenditure
Total pre-production capital for the project is A$54m.
Planned Start/End Date
Not stated.
Latest Developments
The Governor of South Australia has issued a proclamation under the Mining Act, preventing future mining applications at the Bird in Hand gold project.
The proclamation follows South Australian Energy and Mining Minister Tom Koutsantonis’ refusing the mining lease and miscellaneous purposes licence application for the gold project in February this year.
The proposed gold mine is situated beneath an Adelaide Hills winery, with Koutsantonis saying threats to the tourist region were too great to give the mine final approval, despite recommendations in an assessment report by the South Australian Department for Energy and Mining (DEM), which indicated its support for the granting of the mining licences in respect of the mine.
“The conclusion by DEM in its assessment report is not a surprise, as Terramin’s application was supported by comprehensive studies based on science, which demonstrated that there would be no adverse environmental or socioeconomic outcomes arising from Terramin’s mining proposal,” Terramin has said.
The company has added that it has not been made aware of any issues with the methodology or conclusions of these studies, and has indicated that it continues to pursue strategies to resolve the matter.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Terramin Australia, tel +61 8 8213 1415 or email info@terramin.com.au.