PERTH (miningweekly.com) – The Davyhurst gold project, in Western Australia, could restart operations as soon as the fourth quarter of this year, ASX-listed Ora Banda Mining said on Tuesday, with first gold pour targeted for the first quarter of 2021.
A newly completed definitive feasibility study (DFS) has estimated that the project could produce some 81 000 oz/y of gold over a mine life of an initial five years, at a C1 cost of A$1 427/oz.
The project is expected to require a capital investment of A$45-million, and would have a pay-back period of 14 months, which could reduce to seven months at a gold price of A$21 550/oz.
Based on a A$2 100/oz gold price, the DFS estimated a post-tax net present value of A$137.4-million and an internal rate of return of 109.3%.
“The completion of the DFS represents the culmination of an extensive 12-month work programme focused on a measured and value driven production restart at Davyhurst,” said MD David Quinlivan.
“The DFS confirms that the significant existing infrastructure will enable Ora Banda to pursue a rapid and low capex path to production, with the first gold pour targeted for January 2021. The DFS also marks an important step in the company’s evolution towards its ultimate objective of unlocking the significant value we believe is held in Ora Banda’s strategic and prospective landholding.”
Ora Banda noted that all major approvals and permits have been obtained, or will be obtained within the next two months.
The company will now continue optimising the DFS over the next several months, with a view to refine its plans, and preparations for a competitive tender process for contract mining are also under way, and will be finalised by the first quarter of the 2021 financial year.