PERTH (miningweekly.com) – A scoping study into the Bird-in-Hand gold project, in South Australia, has found that the project could produce some 47 000 oz of gold and 22 000 oz of silver a year, over a five-year mine life.
ASX-listed Terramin Australia told shareholders on Tuesday that the scoping study estimated that a pre-production capital investment of A$34-million would be required, with total life-of-mine capital spend estimated at A$66-million.
The project is expected to have a post-tax net present value of A$101-million and an internal rate of return of 96%.
“Terramin is excited to be able to demonstrate the high-grade, low-cost Bird-in-Hand project,” said CEO Richard Taylor.
The Bird-in-Hand mine will consist of an underground operation, with the ore to be hauled to the Angas zinc mine site for crushing, grinding, gravity separation and flotation, as well as for the sale of gold and silver products.
The saleable products generated would include a gold concentrate, with Terramin saying on Tuesday that the possibility of adding a gravity circuit for gold dore production would be considered as part of the future feasibility studies.
“The project has benefitted from extensive preparatory work undertaken as part of the mining lease application and community engagement process. The result of this work has been to address aspects of the development based on recently completed study work, such as water management, and which represents an evolution of earlier studies,” Taylor added.
Terramin is now finalising documents to support a mining lease application for the project, with the aim of submitting the applications by the end of the first quarter of 2019.