Name of the Project
Bankan gold project.

Location
Guinea.

Project Owner/s
Predictive Discovery Limited (PDI).

Project Description
A prefeasibility study (PFS) has outlined robust production and financial metrics for the project, confirming its status as one of the most exciting development projects worldwide.

The project has a maiden probable ore reserve estimate of 57.7-million tonnes at 1.64 g/t gold for 3.05-million ounces of contained gold across the project’s NEB openpit, NEB underground and BC openpit areas.

An ore reserve case and an extension case have been developed for the project.

Ore Reserve Case
The production target and forecast financial information are based on indicated mineral resources/probable ore reserves.

The ore reserve case proposes a mine life of 11 years, processing 5.5-million tonnes a year of material for average production of 256 000 oz/y of gold. Total gold production is estimated at 2.82-million ounces, from mill feed of 57.7-million tonnes at 1.64 g/t gold containing 3.05-million ounces of gold.

Extension Case
The production target and forecast financial information comprise, on a contained gold basis, 87.2% indicated mineral resources or probable ore reserves and 12.8% inferred mineral resources.

The extension case produces an average of 269 000 oz/y over 12 years for total production of 3.23-million ounces, from mill feed of 61.5-milllion tonnes at 1.77 g/t gold containing 3.49-million ounces of gold.

Conventional drill, blast, truck and shovel methods will be used for the NEB openpit. The NEB underground orebody will be mined using transverse longhole open stoping with paste fill.

The 5.5-million-tonne-a-year processing plant will use conventional carbon-in-leach technology with upfront gravity recovery.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The ore reserve case delivers a pretax net present value (NPV), at a 5% discount rate, of $848-million and an internal rate of return (IRR) of 30.3% at a gold price of $1 800/oz, with a payback of 1.5 years.

The extension case delivers a pretax NPV, at 5% discount rate, of $998-million and an IRR of 31.3% at a conservative $1 800/oz, with a payback of 1.5 years.

Capital Expenditure
Both cases require upfront capital of about $456-million.

Planned Start/End Date
The project has a two-year construction period.

Latest Developments
Predictive Discovery has announced more solid results from infill drilling at the BC deposit of the project, which should allow for the company to upgrade some of its inferred mineral resources to indicated status.

The company has been drilling below the PFS pit design in support of an overall definitive feasibility study on the project and to identify additional deposits to prolong the current Bankan estimated mine life of 12 years.

As of July 16, Predictive completed 1 019 m of drilling across seven holes at the BC deposit, which hosts a current mineral resource of 487 000 oz.

The BC deposit is located about 3 km west of the main NEB deposit. Another target, called 800W, is located about 400 m north-west of NEB and has no mineral resources attributed to it.

For this deposit, Predictive has completed 22 holes totalling 1 585 m of drilling, with some of the intercepts including 15 m of gold grading 22.2 g/t from 13 m, 18 m of gold grading 2.03 g/t from 40 m and 8 m of gold grading 4.57 g/t from 23 m.

Predictive MD Andrew Pardey has said the very positive results at 800W build on previous exploration drilling programmes and continue to define a shallow orebody and reinforce the opportunity to increase the current 207 000 oz BC ore reserve.

Meanwhile, the best intercepts for the BC deposit below the PFS pit include 43 m of gold grading 5.58 g/t from 128 m; 22 m of gold grading 2.01 g/t from 176 m; 18 m of gold grading 2.07 g/t from 91 m; and 8.1 m of gold grading 2.52 g/t from 108 m.  

Predictive expects to announce final results from the BC infill drilling programme soon, while more resource development drilling continues to advance at the Gbengbeden, SB and Argo targets.

The company is in the application process for a mining permit for Bankan, with its environmental- and social-impact assessment having been submitted for approval in June.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Predictive Discovery Limited, tel +61 8 9216 1020.