Millennium Minerals Identifies Cost Cuts to Extend Nullagine Minelife

THE BOURSE WHISPERER: Millennium Minerals (ASX: MOY) announced the appointment of Australia-based consulting engineering firm Ausenco to complete a Feasibility Study on an alternate processing option for the company’s 100 per cent-owned Nullagine gold project in Western Australia.

Millennium Minerals explained the alternate processing option had been identified as part of a Sulphide Ore Expansion Study at the project.

The company has identified an alternative processing configuration, which it believes could result in a reduction in both capital and operating costs compared to the integrated CIL and flotation circuit that had previously been touted.

The alternative process could also deliver several strategic benefits to Millennium’s expansion plans at Nullagine.

The basis of the new process method is scavenging un-leached sulphide concentrates from the existing CIL tailings and subjecting them to ultra-fine grinding and intense cyanidation to achieve an improvement in the overall leach recovery.

“The Sulphide Ore Expansion Study, which underpins our corporate objective of becoming a 100,000 ounces-a-year producer by unlocking the existing large sulphide Mineral Resource inventory at Nullagine, is now in its final and most important stages,” Millennium Minerals chief executive Peter Cash said in the company’s announcement to the Australian Securities Exchange.

“The identification of this new processing option could transform the economics of the expansion project, dramatically reducing both capital and operating costs and resulting in a major reassessment of our reserve inventory.

“We still have further work to do to confirm that this is the case, but the early indications are extremely positive.

“The imminent completion of the Expansion Study dovetails with our move underground at Nullagine, with development of our first underground mine at Bartons set to begin by the end of this quarter.

“It also comes at a time when our exploration team is continuing to enjoy success with deeper drilling identifying the potential to significantly grow the Mineral Resource base below and along strike of the existing open pits.”