PERTH (miningweekly.com) – A scoping study into the Mt Mackenzie gold project, in Queensland, has tapped a 300 000 t/y opencut mine as the most likely development option for the project.
ASX-listed Resources and Energy Group on Friday said that the scoping study estimated that for a capital cost of A$13-million, the company could develop a gold mine producing an average 43 200 oz and 242 400 oz of silver over a 43-month period.
The project was expected to generate operating revenues of A$91-million and earnings before interest, taxes, depreciation and amortization of around A$30.5-million.
“The outcomes of the scoping study based on the recently optimised mineral resource for the Mt Mackenzie gold project indicate the potential for development of a low cost and profitable project,” said CEO David Frances.
“The study concludes that mine life of about four years, with production of 45 000 oz of gold, would provide an attractive payback period of approximately 15 months based on an initial capital cost of approximately A$13-million. The study has also identified a potential mining and process route which would enable recovery of a greater proportion of the primary mineral resource than presently contemplated.”
Frances said that the feasibility study for the project, and the exploration potential in the immediate vicinity of the project would be priorities for Resources and Energy Group as the company looked towards completion of the feasibility study.
“The scoping study has demonstrated that Mt Mackenzie has the potential to be a profitable development with considerable upside,” he added.