PERTH (miningweekly.com) – Dual-listed miner Besra on Friday reported that its Bau gold project, in East Malaysia, could deliver about 460 000 oz during the first stage of production.

A feasibility study on the Stage 1 operation, which was based in the Jugan Hill deposit with a reserve of about 2.44-million tonnes, grading 1.47% gold, concluded that the project would have an initial mine life of four years.

The project would require a capital investment of $92-million and sustaining capital of $16.2-million, while delivering a net present value of between $50-million and $111-million.

“The release of the Stage 1 feasibility study will be a significant step forward in Besra’s corporate development. Having already brought two gold mines into production in Vietnam, one of the toughest mining jurisdictions in the world, we now turn our attention to East Malaysia where we have established an economic justification and the technical feasibility of bringing the multi-deposit Bau property into first stage production,” said Besra CEO John Seton.

He added that the initial four-year mine life would be extended as nearby deposits were developed using existing plant and infrastructure.

A Stage 2 prefeasibility study has also started to incorporate south-westerly extension of the Jugan Hill deposit and adjacent deposits.

Stage 2 would extend the mine life to 12 years, and increase total production to more than one-million ounces, and should replicate or exceed the financial returns of the Stage 1 development, said Seton.

ASX- and TSX-listed Besra was currently in discussions to fund the company’s share of the equity to finance Bau through a minority interest sale. This would ensure that shareholders would not be subject to unreasonable dilution, said Seton.

The company was also expected to complete an interim convertible note raising as part of its overall financing strategy.

Once in production, the Bau project would be the thirteenth largest gold-producing property in Asia.