THE BOURSE WHISPERER: Pantoro Limited (ASX: PNR) has completed a Processing Plant Options Review and Scoping Estimate at the company’s Norseman gold project in Western Australia.
The study was completed by Como Engineers and considered three options for the processing plant including:
Option A – Refurbishment of existing structures and equipment in the existing location. The existing plant configuration utilises primary crushing, and a high aspect SAG mill and ball mill in series;
Option B – Reconstruction of the processing facility with the same configuration at a new location using a combination of refurbished existing major equipment and new structures, piping, electrical and services in a new location; and
Option C – Construction of a completely new processing facility utilising primary and secondary crushing and a single 2.3MW ball mill.
The review concluded the existing leaching circuit to be extensively corroded and in addition to the large capital repair cost would have a high operating cost due to the historical air operated Pachuca tanks in place.
As such, all options included a new leaching circuit using a modern mechanically agitated CIL circuit.
The review found that Options A and B require similar expenditure, while the Option C capital requirement is approximately $10 million higher.
Option A was noted to be higher risk from both safety and financial perspectives.
Option B was therefore chosen for detailed design and cost estimation prior to construction.
“The outcome of this study provides Pantoro with a clear way forward for reconstruction of the Norseman processing facility,” Pantoro managing director Paul Cmrlec said in the company’s announcement to the Australian Securities Exchange.
“The large amount of existing infrastructure at the site provides a major reduction in capital costs for the project, and the review confirms our pre-acquisition cost assumptions.
“We look forward to commencing the definitive plant design and cost calculation in the new year. The project is advancing as expected as we progress towards re-commencement of production.”