Scoping Study – Results

Project Summary

The Scoping Study has resulted in the development of a mining strategy whereby the JV gold deposit is mined and extracted in the following manner:

  • Rehabilitation of Target No 3 Shaft and associated infrastructure
  • Early development and mining after approximately 12 months via Target No 3 Shaft brings forward gold production
  • Re-equipping of Target No 2 Shaft and all associated surface and underground infrastructure
  • All production hoisting to be switched in mine life years 10 – 11 to Target No 2 Shaft and production tonnages to be sourced from areas accessed by the conveyor decline system linked to the shaft. This should allow a full ore production rate of 100,000tpm from Target No 2 shaft in addition to Target No 3 shaft operations
  • Access deeper portions of the JV orebody as mining progresses using Target No 2 shaft and associated conveyor declines.

Engineering concepts have been developed, capital and operating costs reviewed and a discounted cash flow model chosen to evaluate the significant economic potential for the project.

Project Conclusions

  • Scoping Study results show impressive economic returns and the JV partners have now approved to progress the project to full Pre–Feasibility Study status
  • The use of Target No 3 Shaft to gain access for early production is key in delivering a strong economic evaluation. Early revenue significantly reduces the maximum negative cash flow, resulting in a pay back of less than 4 years.

The graph below shows the anticipated gold production

Future Work

Future work will focus on areas that have potential to improve the project return and/or de-risk the project.

  • Additional geological exploration work is being undertaken in areas where early mining will take place to increase potential available gold resources (as shown below in Phase 1)
  • A Pre-Feasibility Study has been initiated that will include:
    • In conjunction with historical exploration drilling, geotechnical data will be gathered. This includes cores for testing and underground mapping of areas of interest
    • Trade off studies identified from the Scoping Study
    • Confirm condition and availability of existing infrastructure as it has shown to be a key in the project success
    • Harmony infrastructure that is used, including Target No 2 & No 3 Shafts for production and No 4 & No 5 Shafts for ventilation.

Phased Mine Plan

 

mine-phases-oct16

Phase 1:
Mine shallow southern portions of orebody off existing level infrastructure first – to 56 Level

Phase 2:
Access down plunge from early (Phase 1) mining areas using decline access – to 62 Level

Phase 3:
Further extension of Phase 2 mining or development of a new access into middle and northern areas of JV orebody – below 62 Level