PERTH (miningweekly.com) – Junior Terramin Australia on Wednesday told shareholders it had received information that the Governor of South Australia had issued a proclamation under the Mining Act, preventing future mining applications at the Bird in Hand gold project.

The proclamation followed on from South Australian Energy and Mining Minister Tom Koutsantonis refusing the mining lease and miscellaneous purposes licence application for the gold project in February this year.

The proposed gold mine lies beneath an Adelaide Hills winery, with Koutsantonis saying threats to the tourist region were too great to give the mine final approval, despite recommendations in an assessment report by the South Australian Department for Energy and Mining (DEM) which indicated that DEM supported the granting of the mining licences in respect of the mine.

“The conclusion by DEM in their assessment report is not a surprise as Terramin’s application was supported by comprehensive studies based on science, which demonstrated that there would be no adverse environmental or socio-economic outcomes arising from Terramin’s mining proposal,” Terramin said in a statement on Wednesday.

“These studies were peer-reviewed by independent and government experts over many years. Terramin has not been made aware of any issues with the methodology or conclusions of these studies. To date, Terramin has not received an adequate explanation for the decision by the Minister and continues to pursue strategies to resolve the matter,” the company told shareholders.

A previous feasibility study into the Bird in Hand project estimated that over a mine life of four years, the project could produce an average of 11 100 t/y of concentrate containing 44 700 oz of gold and 20 600 oz of silver.

The 2021 feasibility study estimated that the Bird in Hand project would generate total revenues of A$428-million, would have a pre-tax net present value of A$147-million and an internal rate of return of 82%, and a C1 unit cost of A$272/t after silver by-product credits.