THE BOURSE WHISPERER: YTC Resources has completed a Definitive Feasibility Study of its Hera gold-base metal deposit.
The study covered Stage 1 of the development of the company’s Hera-Nymagee project located in the Cobar Basin, New South Wales.
The Hera-Nymagee project consists of the Hera gold-lead-zinc deposit and the Nymagee copper deposit.
Both of these are located only 4.5 kilometres apart within the company’s tenements in the Cobar Basin, which the company claims to have total prospective strike length of 25km.
YTC said the Hera DFS has confirmed the technical and financial viability of the development of the Hera deposit.
Key findings of the Hera DFS include:
– High margin, low-cost gold production at A$395 per ounce (after base metal credits);
– Ore Reserve of 423,471 gold equivalent ounces at average grade of 7 grams per tonne gold equivalent;
– 7.3 year mine life producing 391,000 ounces gold equivalent;
– Gross revenue of $510 million, and a pre-tax operating profit of $94.8 million (based on A$1,450 per ounce gold price);
– Gross revenue of $572 million, and a pre-tax operating profit of $152 million (based on A$1,750 per ounce gold price);
– Gold recovery of 94 per cent; and
– Pre-Production Capital Cost of $73.5 million.
“With operating costs after lead-zinc credits forecast to be less than A$400 per ounce, Hera will generate significant returns for YTC and establish a strong platform for growth, initially through the expansion of the project to incorporate the mining of high grade copper from the nearby Nymagee deposit,” YTC Resources chief executive officer Rimas Kairaitis said in the company’s announcement to the Australian Securities Exchange.
“YTC is very pleased with the results of the DFS, and looks forward to commencing the transition from explorer to developer at the Hera-Nymagee Project, whilst simultaneously continuing to aggressively explore our highly prospective tenement package in the Cobar Basin.
“The recent discoveries at Nymagee have clearly demonstrated the enormous potential for our ground to host world-class deposits.”
Stage 1 development will see the establishment of the Hera gold mine and construction of a processing facility at the Hera site.
The company has a feasibility study currently in progress on Stage 2 to evaluate the integration of the Nymagee deposit utilising Stage 1 infrastructure.
YTC has adopted a two-stage approach to developing the Hera-Nymagee project to fast track first gold revenue and to establish mining and process infrastructure with a view to self-funding the development and integration of the larger Nymagee deposit.
The company said the study confirms a financially and technically robust underground mine and processing plant at the Hera-Nymagee project producing gold and silver doré bars and a bulk-lead-zinc concentrate for sale.
Once established, YTC said the Hera mine will substantially provide the mining and process infrastructure to support the future integration of mineralisation from the Nymagee copper deposit.