ACR: Gute Mine schlechter Standort
DasMünz : a rate of return of 128% and a payback of 18 mont
A PEA study, which focused solely on an open-pit operation on the Pickstone sheer zone, confirmed a high grade open pit would able to produce at a rate of 50,000 tonnes per month and a mined grade of 4.6 grams per tonne.
At 2 g/t per tonne cut-off, the pit was estimated to produce an estimated 720,000 gold ounces over a life of mine of 10 years, which rose to 850,000 ounces over 16 years applying a 1.0 g/t cut-off.
Consultant Minxcon said the pit will require upfront expenditure of US$60 mln, but will yield an NPV of approximately US$300 million, a rate of return of 128% and a payback of 18 months at a 2.0 g/t cut-off.
The gold price assumed is US$/oz 1,500 with an estimated operating cost of approximately US$ 450/oz.
The PEA considered 26 scaled options ranging from 25ktpm to 100ktpm production, with the 50ktpm option used on the basis of its operating sustainability and capital efficiency.
The study is the first component of the feasibility study commissioned for the whole operation at the beginning of October 2012 and did not include anything for Pickstone underground nor the Peerless sheer zone open-pit and/or underground potential.
A scoping study published in November showed a first pit at Pickstone could be underway nine to 12 months after receiving funding and would produce 30,000 ounces a year over six years at an estimated cash cost of less than US$350 an ounce.
It would mine to a depth of 40 metres and at an average grade of 3.8 grams per tonne with a cut off of 1 gram. The capital costs for this mine were put at US$10 million.
Investors welcomed the news, sending shares up 0.35p or 14% to 2.85p.
Broker SP Angel joined them by giving the company a ringing endorsement.
“The PEA on just one part of the project has shown good prospects for this project which has still to include the underground potential at Pickstone and the open pit/underground at Peerless,” analyst Carole Ferguson said.