Intermin Resources Finalises Goongarrie Lady Feasibility Study

THE BOURSE WHISPERER: Intermin Resources (ASX: IRC) announced Feasibility Study results from the company’s 100 per cent-owned Goongarrie Lady gold project, located 85km north of Kalgoorlie-Boulder in Western Australia.

Intermin Resources released details of the study results, including an updated JORC 2012 Mineral Resource Estimate for the project now totalling 0.31 million tonnes at 2.4 grams per tonne gold Au for 24,000 ounces (1.0g/t gold lower grade cut-off).

Over 87 per cent of the Mineral Resource Estimate has been promoted to the Measured and Indicated categories.

A maiden Ore Resrve has been calculated of 0.135 million tonnes at 2.94g/t gold for 12,700 ounces.

Metallurgical test work completed on representative samples from all ore zones included estimated recoveries of 94 per cent.

Statutory approvals are well advanced and the study assumes contract mining and haulage and ore processing at one of three nearby third party facilities.

Intermin Resources said that Feasibility Study findings indicate a technically strong and financially viable project with the following:

Open pit mine design producing 135,000 tonnes at a fully diluted grade of 2.94g/t gold for 12,700 ounces over a seven month mine life;

Third party milling at 94 per cent metallurgical recovery producing 11,938 ounces;

Low up-front capital costs of $0.73 million;

C1 Costs of $1,131 per ounce and All In Sustaining Costs of $1,164 per ounce;

The project is expected to generate $5.7 million in free cash flow in seven months at a $1,700 per ounce gold price.

“The Goongarrie Lady Feasibility Study has delivered robust economic results with strong projected cash margins and reduced geological risk,” Intermin Resources managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“As with the successful Teal gold mine, the company has taken a conservative approach to both Resource estimation and development studies with the infill drilling increasing geological confidence and mine optimisation studies adopting conservative cut off grades to ensure acceptable cash margins.

“The company now looks forward to completing final statutory approvals and determining the optional development pathway to maximise and realise value for Intermin shareholders as Goongarrie Lady is confirmed as the next development in the production pipeline to enable our self-funded organic growth.”