PERTH (miningweekly.com) – ASX-listed Geopacific Resources has updated the economics of its planned Woodlark gold project, in Papua New Guinea, as it brings the project into execution readiness.
An execution update has increased the project’s projected net present value from the A$197-million projected in the 2018 definitive feasibility study, to A$347-million, and increased the targeted internal rate of return from 29% to 34%.
Expected free cash flow from the project has also increased from the A$344-million estimated in the study, to A$575-million, while the pay-back period has reduced from 2.2 years to 1.8 years.
Geopacific on Monday said that the execution update had forecast average all-in sustaining costs of A$1 239/oz over the 13-year mine life, with the one-million-ounce reserve underpinning an openpit mine plan with a 2.4-million-tonne-a-year carbon-in-leach process plant.
The project is expected to produce 980 000 oz over its mine life.
“With the release of the execution update, Geopacific marks the next step in the development of the Woodlark gold project. The report is the culmination of the substantial body of work that has been undertaken over the last two years to de-risk the construction phase and enhance the performance once in operation,” said CEO Tim Richards.
“The Woodlark gold project is now truly construction ready, with permits in place, a preferred financier appointed, and engineering and site pre-work well advanced.”
Geopacific is targeting first gold production in the fourth quarter of 2022.