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Koongie Park copper/zinc project, Australia – update

14th July 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Koongie Park copper/zinc project.

Location
Hall’s Creek region, Western Australia.

Project Owner/s
AuKing Mining.

Project Description
A scoping study has confirmed the potential for a financially robust, globally competitive operation.

The proposed mine will source mineralisation from four openpit mines – Sandiego, Mt Angelo North, Onedin and a later-staged operation from the low-grade Bommie. An underground mine will also be built at Sandiego. All ore will be processed at a central facility at Sandiego, with a nameplate capacity of 750 000 t/y for the run-of-mine ore.

Total production is estimated at 110 000 t copper, 38 000 t zinc and 355 000 oz silver over an 11-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount, of about A$176.9-million and an internal rate of return 39.7%, with a payback of 2.45 years.

Capital Expenditure
Preproduction capital expenditure is estimated at A$134-million.

Planned Start/End Date
Not stated.

Latest Developments
AuKing has taken full ownership of the Koongie Park copper/zinc project, with project partner Astral Resources' interest converting to a 1% net smelter return royalty.

Full ownership was triggered under a 2021 earn-in and joint venture (JV) agreement between the companies that stated Astral’s share in the project would convert to a net smelter royalty, should its interest in the JV drop below 10%.

This threshold was reached at the end of June.

Astral will retain the right to explore and develop gold and other precious metals opportunities within the Koongie Park project area, but the rights will not apply to the mining licences on which the Onedin and Sandiego deposits are located.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
AuKing Mining, tel +61 7 3535 1208 or email admin@aukingmining.com.

Edited by Creamer Media Reporter

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