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PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Okvau gold project, in Cambodia, has lowered the expected capital costs, owner Renaissance Minerals reported on Monday.
The PFS estimated that the project would require capital investment of $120-million, which was down from the $133-million estimated in the 2014 scoping study, while life-of-mine cash costs also decreased from the $735/oz estimated in the scoping study, to $684/oz.
Renaissance was targeting production of some 91 500 oz/y over the mine life of eight years, with ore to be produced from a single openpit mine, mined in three stages.
The project was based on a mineral resource of 1.16-million tonnes, grading 2.2 g/t gold for 829 000 oz of gold.
“The PFS shows a robust, low operating cost project that will generate significant cash flows of around $45-million a year in the early years, with resilience to lower gold prices,” said Renaissance MD Justin Tremain.
“It is an uncomplicated project with an excellent grade of 2.2 g/t gold, resulting in low all-in sustaining costs of $735/oz, and importantly $611/oz in the initial five years.”
Tremain said a new resource model with similar grade and ounces to the previous resource model, and with over 70% of the resource ounces falling into an economic pit, clearly demonstrated the robust nature of the Okvau deposit.
The PFS also resulted in a 34% increase in the net present value, compared with the scoping study, which was now estimated at $174-million, while the internal rate of review increased from 29% to 35%.
Renaissance would now undertake some further studies to move the project towards a development decision, including shallow resource infill drilling, the completion of an environmental-impact assessment, further metallurgical testwork, tailings and waste studies and the consideration of the underground potential at Okvau.