PERTH (miningweekly.com) – A bankable feasibility study (BFS) at the Julius gold deposit, in Western Australia, has revealed that 63 965 oz of gold can be recovered for a capital cost of A$17.5-million.
ASX-listed Echo Resources reported that the BFS delivered an initial ore reserve of 866 000 t, grading 2.44 g/t, with cash costs estimated to reach A$832/oz and the project expected to deliver earnings before interest, taxes, depreciation and amortisation of A$41-million.
The project is estimated to have an initial mine life of less than two years.
“The Julius BFS demonstrates the very robust nature of the orebody with low cash costs and a very high internal rate of return of 117%, which includes all of the capital required to refurbish the Bronzewing infrastructure,” said Echo CEO Simon Coxhell.
Echo recently completed a takeover of fellow ASX-listed Metaliko Resources, gaining control of the Yandal gold project, in Western Australia, which includes the two-million-tonne-a-year Bronzewing milling facility, a 280-room village, and project tenements and production infrastructure.
“There exist a number of excellent opportunities within a short distance from the Bronzewing mill to substantially add to the mill feed. Currently Echo’s global mineral resource estimate stands at 16-million tonnes, at 1.8 g/t gold for around 950 000 oz. We have reviewed all available data and now plan to prioritise these resources to substantially add to the mine life,” said Coxhell.
A large exploration and development programme is planned for the Yandal tenements in 2017, to grow the existing resource and reserve prior to a final commitment to refurbish the Bronzewing processing facility.