JOHANNESBURG (miningweekly.com) - Aim-listed Highland Gold Mining has updated its resources for the Kekura gold project, located in the Chukotka region in Russia's Far East, following the completion of a definitive feasibility study (DFS).
The DFS has shown that the project holds total gold reserves of two-million ounces of gold at a grade of 7 g/t, versus the previously reported 1.7-million ounces at a grade of 10.7 g/t.
The DFS envisages a sequential and combined openpit and underground operation with an estimated total mine life of 16 years, compared with eight years projected in the preliminary feasibility study. The mine is expected to produce around 172 000 oz/y for the first eight years of operation and 46 000 oz for the final eight years.
The company noted that substantial exploration work and technical studies had also been completed, with production targeted to start in 2021.
Expected mill head grade of 7.49 g/t for the first nine years of plant operation will be delivered, and 5.58 g/t for the final seven years, while openpit mining is planned for the first four years, with combined openpit and underground operations starting from year five.
The project will have mining and processing plant capacity of 800 000 t/y, with volumes dropping to 300 000 t/y in the final seven years as mining operations move completely underground.
Highland further pointed out that it now expected capital costs for the development of the mine to be about $229-million.
Preliminary construction work is already under way at Kekura, with the bulk of construction due to take place in 2019/20. Key equipment will be selected and ordered this year for delivery to site in early 2019. Precommissioning is scheduled for late 2020 or early 2021, with ramp-up to full production in the second half of 2021.