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Nimbus ‘increasingly attractive’ – MacPhersons

Nimbus ‘increasingly attractive’ – MacPhersons

Photo by Bloomberg

14th July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The share price of ASX-listed MacPhersons Resources jumped on Monday after preliminary findings of a bankable feasibility study (BFS) on the Nimbus-Boorara silver/gold/zinc project, in Western Australia, indicated lower capital and operating cost estimations for the project.

The BFS, which was scheduled for completion in the September quarter, indicated that the lower costs not only had the potential to boost margins, but could also result in the cutoff grades of the project being reduced, which, in turn, could increase reserves and grow the mine life.

Scoping studies revealed that the project would require a total capital injection of between A$58-million and A$66-million, with all-in cash costs estimated at between A$12/oz to A$16/oz silver and between A$600/oz and A$1 050/oz gold.

MD Morrie Goodz told shareholders that the preliminary results of the BFS showed that what was already a robust project was becoming “increasingly attractive on virtually every front”.

“These preliminary findings provide strong evidence that we will drive down costs further, we will upgrade more of our existing mineralisation in the resource and reserve categories and we will add to the overall inventory through the identification of new zones.”

Goodz said that in the process, MacPhersons would also strengthen the project’s margins and grow its mine life, all before the extensive exploration around Nimbus was taken into account.

“We are confident that the final BFS numbers will pave the way for MacPhersons to secure project funding on attractive terms, putting the company on track to generate strong production and cash flow.”

The project was estimated to host some 4.9-million tonnes, grading 149 g/t gold for 23.4-million ounces of gold equivalent.

MacPhersons shares were trading at a high of A$0.19 a share on Monday, up from a low of A$0.16 a share. Late in the day, its stock traded 12.5% higher at A$0.18 a share.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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