Name and Location
A1 gold mine – Stage 1 project, Victoria, Australia.

Client
A1 Consolidated Gold.

Project Description
A scoping study on Stage 1 mining of the A1 gold mine stockworks has highlighted the robust nature of the project’s life-of-mine cost model, with an estimated all-in sustaining cost of A$860/oz of gold.

Stage 1 of the project is limited to the area of the mine between 1420 RL and 1310 RL, which contains the indicated mineral resource. This is estimated at 250 000 t grading 5.1 g/t of gold.

The scoping study envisages a three-year mine life for Stage 1, with a production target of 378 000 t. This production target equates to 67% of the Joint Ore Reserves Committee-compliant mineral resource estimate between the 1420 RL and 1310 RL and comprises about 37% of the indicated mineral resource and 63% of the inferred mineral resource. During the first two years, 42% of production will be from indicated mineral resources.

Mill recoveries have been set at 80%, following consultation with the toll treatment contractor, Balmaine Gold (a wholly owned subsidiary of Castlemaine Gold), at Ballarat. This will be confirmed by the treatment of on-site stockpiles before production. Ore will be treated off-site by Castlemaine, in Ballarat, for one-year, with ore expected to be treated on site for the balance of the Stage 1 mine life.

Stage 2 mining of the remaining inferred mineral resource will depend on the results from an ongoing diamond drilling programme aimed at increasing the level of confidence in a portion of the inferred resource, which is estimated at 1.42-million tonnes. It is expected that a Stage 2 scoping study will be completed to allow for continuous mining for another three years.

Net Present Value/Internal Rate of Return
The project has a net present value of A$23.2-million and an internal rate of return of 62%.

Value
Preproduction capital is estimated at A$2.9-million.

Duration
Not stated.

Latest Developments
The Stage 1 scoping study will form the basis for A1 Consolidated’s ongoing mine plans and for accessing the company’s financial requirements to move into production.

Key Contracts and Suppliers
Mining One (Stage 1 scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
A1 Consolidated Gold, Dennis Wilkins, tel +61 8 9389 2111 or email admin@a1consolidated.com.