Nicolsons project given go-ahead
PERTH (miningweekly.com) – The Western Australian Department of Minerals and Petroleum has approved the mining proposal and closure plan for the proposed Nicolsons gold mine, ASX-listed Pacific Niugini said on Monday.
The project was expected to have an initial mine life of four-and-a-half years, and would deliver an after-tax net profit of A$50-million, a net present value of A$42-million and an internal rate of return of 162%.
Existing infrastructure at the Nicolsons mine would allow Pacific Niugini to restart operations for a minimal capital injection of A$10.7-million, with the project targeting production of about 130 000 t/y from a small-scale underground mine at the base of the existing openpit operation.
“We now have a clear path to commencing site works with key project personnel in place. We have a high-grade underground gold mine with a rising gold price environment and are excited for our shareholders with the value that this development represents,” said Pacific Niugini MD Paul Cmrlec.
“We await the successful completion of our rights issue and the start-up of what we believe will be a rewarding and transitioning step for the company as we enter the rank of gold producer.”
At the end of last year, Pacific Niugini secured a financing proposal for the restart of operations at Nicolsons, and the company was also assisting its joint venture partner Bulletin Resources in obtaining financing for its share of the project costs.
Pacific Niugini was also undertaking a rights issue to cover its share of the funding, and to enable a drawdown of the proposed debt facilities.
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