PERTH (miningweekly.com) – Junior Resources and Energy Group (REZ) is undertaking a review of its Mt Mackenzie gold/silver project, in Queensland, to incorporate a higher gold price.
A December scoping study into the project 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 300 000 t/y 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 scoping study was based on a gold price of A$2 000/oz.
REZ on Tuesday said that the company has now restated the scoping study for Mt Mackenzie using a gold price of A$2 600/oz, which has seen the projected free cash flow from the project rise from A$30.5-million to A$54.6-million, while operating cash flow is projected to be A$67.6-million.
The company has now initiated a revised mineral resource estimate, pit optimisation and life-of-mine scheduling for a 500 000 t/y development option, using the revised gold price.
This review will be released within two to four weeks, the company said.