THE BOURSE WHISPERER: Doray Minerals has been granted a mining lease by the Western Australian Department of Minerals and Petroleum (DMP) over the company’s 80 per cent-owned Andy Well gold project.
The lease covers approximately 1,100 hectares and includes the high-grade Wilber Lode deposit, proposed site infrastructure and a number of highly prospective near-mine exploration targets, including the Bernie, Judy and Wendy zones.
Andy Well gold project, showing location of recently granted Mining Lease, M51/870. Source: Company announcement
Doray said the granting of the lease allow it to commence development at Andy Well and for mining to commence in the 2012-2013 financial year.
“Over the last 12 months, we have published a 90 per cent increase to the high-grade Wilber Lode resource, increased the indicated portion of the resource to 89 per cent, reached an agreement with the local native title claimants, recruited key operations staff, released the results of a positive scoping study and committed to a Bankable Feasibility Study, all in just over two years since listing on the ASX and making the initial discovery at Andy Well,” Doray Minerals managing director said without taking a breath in the company’s announcement to the Australian Securities Exchange.
“The grant of the Mining Lease is another very significant milestone in the development of the Andy Well gold project and now enables us to submit all remaining permits and license applications, including the Mining Proposal and Closure Plan for consideration by the DMP.”
Pending completion of the Bankable Feasibility Study and meeting of other requirements, Doray anticipates the commencement of open pit mining at Andy Well in the second half of 2012 with first gold production scheduled for mid-2013.
The company is currently in commenced discussions with a number of banks regarding project finance for the project.
Doray also expects cashflow to repay its capital expenditure in as little as 18 months, claiming the project lends itself to a relatively simple project finance facility.
The company recently reached agreement with the Shire of Meekatharra in regards to a lease for the site of its proposed accommodation village, to be located in Meekatharra, with the Agreement ratified at the Shire’s most recent Council meeting.
Drilling continues at Andy Well, testing for extensions to the north and south of the current Wilber Lode resource, as well as across a number of other target zones.