Azumah cuts capital costs at Wa project
PERTH (miningweekly.com) – Gold developer Azumah Resources has reduced the expected capital costs at its Ghana-based Wa gold project by some $54-million to $142-million.
The ASX-listed company said on Monday that it had achieved a $28-million saving by incorporating a contractor mining fleet into the mine plan, as well as rescheduling ore mining during construction.
No changes were made to the plant design or supporting infrastructure, and the project was still expected to deliver around 90 000 oz/y over a seven-year mine life, through a 1.2-million-tonne-a-year plant.
Azumah MD Stephen Stone said that the $54-million capital reduction significantly repositioned the Wa project for development.
“The recent high-grade discovery at Manwe, the requisition of the high-grade 69 000 oz Julie West resource, a firmer gold price and improved investor sentiment towards overseas gold projects considerably enhances the prospect of securing project finance or a development partner,” said Stone.
While C1 cash operating costs were not expected to materially change from the $696/oz estimate established in the 2015 feasibility study update, Azumah noted that, overall, a material reduction in the all-in sustaining costs and an increase in the net present value and internal rate of return was expected, owing to the much lower capital costs.
The project’s financial model was currently being updated.
Meanwhile, Stone told shareholders on Monday that a development decision on the Wa project was contingent on financing and the finalising of all permits, in particular the environmental permitting.
The company was investigating a number of financing options, including a possible development partnership, while also awaiting a response on its environmental permitting application.
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