THE BOURSE WHISPERER: Golden Rim Resources (ASX: GMR) has completed a maiden Mineral Resource estimate and received preliminary Scoping Study estimates on the Netiana Lodes at the company’s Balogo project, in Burkina Faso.
The company has had an estimated JORC-code compliant Inferred Resource calculated of 850,000 tonnes at 6.8 grams per tonne gold for 185,000 ounces of contained gold at 0.5 grams per tonne gold lower cut-off.
Having received the Inferred Resource estimate Golden Rim engaged Coffey Mining to run the Scoping Study tape over the project to assess the viability of an open cut mining and processing operation to exploit the gold resource at Netiana.
Coffey Mining was instructed to provide preliminary estimates of capital costs (CAPEX) for a processing facility inclusive of all fixed plant and basic camp infrastructure, and a tailings storage facility and operating costs (OPEX), for mining and processing only.
Although Golden Rim is still to complete some testwork, such as comminution, and has conducted limited mine planning, Coffey Mining was able to develop plans for a short term project development of the Netiana Lodes.
First Pass Pit Optimisation for the Netiana Lodes. Source: Company announcement
Coffey established the Netiana Lodes appears robust, as an open pit, with a calculated Net Present Value of $45.7 million and an Initial Rate Return of less than 100 per cent giving a CAPEX payback of less than 5 months.
The CAPEX has been estimated at $38.8 million installed.
This is for a fully transportable front end modular 250,000 tonnes per annum plant coupled to a semi-transportable back end (gravity circuit, CIL, elution and E/W, carbon activation, tails thickening and detox).
The mine OPEX has been estimated at $56/tonne or $197/ounce and the processing OPEX at $112.2/tonne or $406/ounce for a total cost of $603/ounce, inclusive of catering and consumables at a treatment rate of 30 tonnes per hour.
Mine life for this option is 2 years.
Golden Rim said it considers the Balogo project is quickly progressing to become the company’s first gold operation.
“The gold resource on the Netiana Lodes contains high grades, near surface position and excellent metallurgical recoveries to support our objective of developing an open pit mine and processing operation.” Golden Rim Resources managing director Craig Mackay said in the company’s announcement to the Australian Securities Exchange.
“Based on the current resource alone, the mine could produce revenues for Golden Rim in excess of $200 million.
“As we now move to test target areas along strike from the Netiana Lodes we believe the potential to outline satellite gold resources and expand the mine life is very high.”