THE BOURSE WHISPERER: Southern Cross Goldfields is on the verge of becoming the first gold miner and producer in the Marda region, located 400km north-east of Perth in Western Australia.
The company has recently received a positive result from an independent Feasibility Study on its 100 per cent-owned Marda gold project, which it said confirmed the viability of a standalone $51 million greenfields gold development.
Marda gold project location plan. Source: Company announcement
The Feasibility Study defined a robust initial gold operation based on a centrally located 480,000 tonnes per annum gold plant at Marda, which would be the only gold processing facility in the region.
The company considers combining the plant with its extensive tenement package provides an opportunity to develop a significant long-term gold business.
“While the Southern Cross-Marvel Loch region is well known as an established and historic gold producing region, the Marda region to the north – which forms the centre of gravity of our gold business – is by comparison lightly explored,” Southern Cross Goldfields managing director Glenn Jardine said in the company’s announcement to the Australian Securities Exchange.
“While the Feasibility Study announced today underpins the viability of an initial base case 35,000 ounces a year gold mine at Marda, the broader story is the establishment of a strategically significant regional gold processing facility which would effectively open up this hitherto largely ignored region to exploration, development and production.
“This region has extensive gold endowment as evidenced by a number of significant deposits both on our tenements and in the broader region which have not been fully explored.”
Southern Cross said the completion of the Feasibility Study will enable it to proceed with project financing in the second half of 2012, with the objective of commencing construction by the end of the year targeting first gold production in 2013.
“We are very pleased with the results of the Study and we look forward to continuing discussions with potential financiers and other parties with a view to SXG becoming a gold producer in 2013,” Jardine said.