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A1 delivers scoping study in Victoria

8th September 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A scoping study into ASX-listed A2 Consolidated Gold’s namesake project, in Victoria, has revealed that it could deliver about 30 000 oz/y of gold over a three-year mine life.

The Stage 1 scoping study for the A1 gold mine, estimated that the project would require a capital investment of A$2.9-million, and could deliver a net present value of A$23.2-million, and an internal rate of return of 62%.

All-in sustaining costs for the life of the mine have been estimated at A$860/oz.

A1 pointed out on Monday that the Stage 1 scoping study estimated a production target of some 378 000 t over the project’s mine life, equating to 67% of the project’s Joint Ore Reserves Committee-compliant mineral resource of 1.42-million tonnes, grading 6.2 g/t gold.

The Stage 1 study assumed that during the early stages of production, ore would be treated off-site, with A1 entering into an ore tolling agreement with a subsidiary of LionGold Corporation.

Once a site plant had been established, ore treatment would be conducted on-site.

A1 told its shareholders that the Stage 1 scoping study formed a basis for the company’s ongoing mine plans, and to access the company’s financial requirements to move into production.

Edited by Creamer Media Reporter

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