Inova warns of further impairment on Osborne
PERTH (miningweekly.com) – Takeover target Inova Resources has flagged another possible impairment charge of between A$10-million and A$20-million on its Osborne copper/gold project.
In August, Inova warned of an impairment charge of between A$40-million and A$45-million at the flagship project as a result of declining commodity prices.
The miner this week announced that the further impairment charges resulted from a review currently being conducted at the Osborne copper project, which had resulted in the reduction in mineral reserves at the project, translating into a 14% reduction in the planned mill feed tonnage.
An updated mineral resource estimate for the Starra 276 reserve has downgraded reserve estimates, reducing the contained copper by some 30% and the contained gold by some 36%.
The revised resource estimate prompted Inova to undertake the review on the Osborne project to consider development options that would maximise returns and cash flow from the operation over the coming years. This review would entail a life-of-mine evaluation to determine the optimal development pathway for each of the Osborne, Kulthor and Starra 276 underground mines.
The review would incorporate a detailed analysis of the capital development options within the mines, and the operating costs of the project, with a view to rationalising capital expenditure and reducing operating costs.
Inova is the takeover target of China’s Shanxi Donghui Coal Coking & Chemicals Group, which announced plans in August to buy the company for $160-million.
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