PERTH (miningweekly.com) – ASX-listed Intermin Resources was hoping to take a development decision on its Goongarrie Lady gold project, in Western Australia, in 2019.
This comes after a feasibility study (FS) showed that the project could deliver 12 700 oz of gold over a seven-month mine life. The FS estimated that the project would require a capital investment of A$730 000 and would have a C1 cost of A$1 131/oz and an all-in sustaining cost of A$1 164/oz.
Based on a gold price of A$1 700/oz, the project is expected to generate gross revenue of A$20.3-million and free cash flows of A$5.7-million over the seven-month mine life.
Intermin on Thursday told shareholders that the company currently had a market cap of A$41-million and A$10-million cash at bank, as well as investments in ASX-listed companies with a current market value of A$1.1-million.
As such, the company was confident that it would be able to finance the Goongarrie Lady project using its existing cash reserves.
Intermin will review the development options for the project and would start negotiations with mining and haulage contractors, as well as third party toll milling operators, while also completing statutory approvals in the September and December quarters.