Millenium publishes new life-of-mine plan for Nullagine
PERTH (miningweekly.com) – Gold miner Millennium Minerals on Wednesday published a new life-of-mine (LoM) plan for its Nullagine operation, in Western Australia, which includes the recently announced ore reserve.
Based on an updated LoM plan, the company stated that the mine would produce 426 000 oz over the next six years and predicted that cash costs would be $989/oz over the remainder of the project life, while revenue would reach A$645-million.
For 2014, the Nullagine operation was expected to deliver around 76 000 oz of gold.
The project currently contains a resource of 1.91-million ounces of gold, situated within nine deposits. Current ore reserves stood at 465 000 oz. Millennium said that the current mine life of six years was more than adequate as a reserve base to allow for the future development of additional ore reserves.
The company noted that it had a prospective pipeline of targets within its mining leases that indicated the potential for further mineral resource development. These targets would be drilled out over the next two years and assessed, before the potential could be determined.
Following its updated LoM plan, Millennium has initiated discussions with its bankers to agree to an amended debt repayment schedule to match the projects’ production profile. The discussions would likely be completed by the end of March, when the company’s next debt payment was due.
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