THE BOURSE WHISPERER: Polymetals Mining (ASX: PLY) has completed a feasibility study of the company’s Mt Boppy gold project in Central New South Wales.
According to the company the study has demonstrated Mt Boppy to have potential as a development opportunity, which could generate healthy shareholder returns.
“This project has near-term production potential, low execution risk and robust economics, as well as high strategic value,” Polymetals chief executive officer Frank Terranova said in the company’s announcement to the Australian Securities Exchange.
“Owning processing infrastructure in a region surrounded by many active exploration companies places a strategic premium on this project.
“Mt Boppy is one of a number of exciting growth opportunities for Polymetals; we continue to enhance the value of the company through creating a suite of exciting projects.
“Completion of the feasibility study with all major approvals to hand enables us to assess fully the strategic optionality of this project.”
The feasibility was completed based on the following development concept and assumptions:
– Mining of a cut back on the existing open cut mine to extract 587 thousand tonnes of ore mined at 4.32 grams per tonne gold over a 10-month period;
Mt Boppy pit 2012. Source: Company announcement
– Waste material is to be used for a new tails storage facility (wall and base construction), a noise bund and capping of existing tails dam with the remaining waste to be delivered to a dedicated waste dump;
– The mined ore is processed over 24 months at Mt Boppy using the existing plant, which would be upgraded to treat 300 thousand tonnes per annum;
– The existing CIL process plant is to be refurbished with the addition of flotation and concentrate fine grinding circuits to maximise gold recovery from sulphide ores;
– Gold on carbon is to be recovered utilising existing facilities at White Dam, which is serviced by a fully sealed road from the Barrier Highway;
– Grid power to be supplied via reticulated overhead power lines; and
– The existing mining camp in Canbelego is to be expanded.
Polymetals indicated it schedule for the Mt Boppy gold project shows gold production could be achieved in approximately seven months once the project go-ahead is given based on mining equipment mobilisation within two months and a 5-month construction period.
The company said it is now assessing funding options as part of its investment decision process.