Name and Location
Okvau gold project, Mondulkiri province, Cambodia.

Client
Renaissance Minerals.

Project Description
Okvau has a mineral resource estimate of 15.8-million tonnes grading 2.22 g/t of gold.

A prefeasibility study completed on the Okvau project has shown excellent economics and has confirmed the project as a low-cost gold project with robust cash flow, particularly in the early years of production.

The study demonstrates the potential for a project with an initial life-of-mine (LoM) of eight years, producing on average 91 500 oz/y of gold from a single openpit mine using conventional processing and mining methods.

Material will be sourced from a single openpit, with a simple mine design providing scope for scheduling optimisation and mining cost reduction.

The pit has been designed and scheduled in three distinct stages to allow for reduced waste stripping in the initial years and operational flexibility.

The staging of the pit allows for the deferral of waste movement and provides operational flexibility before committing to a cutback for each stage, namely possible deferral of cutbacks with the introduction of new mill feed sources.
Stages 1 and 2 will provide 70% of the LoM mill feed, equivalent to the initial five years of operation, at a strip ratio of 4.7:1.

Stages 2 and 3 of the pit will be introduced as late as possible, while maintaining sufficient run-of-mine stockpiles to constantly feed the 1.5-million-tonne-a-year processing plant.

This will result in the final cutback not starting until the fifth year of mining.

Site infrastructure requirements include the processing plant, storage facilities for tailings, waste rock, water and fuel, an accommodation village, administrative offices and maintenance workshops.

The project will also require a 75 km 66 kV transmission line from site to the national electricity grid, which is being extended to the town of Kratie.

An estimated 30 km of access tracks will need to be upgraded to a suitable all-weather road to site.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 5% discount rate, of $174-million and an internal rate of return of 35%.

Value
The capital cost for the process plant and associated infrastructure along with preproduction mining, has been estimated at $119.8-million.

Duration
Not stated.

Latest Developments
Renaissance will now undertake further studies to progress the project towards a development decision, including shallow resource infill drilling, the completion of an environmental-impact assessment, further metallurgical testwork, tailings and waste studies and the consideration of the underground potential at Okvau.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Renaissance Minerals, tel +61 8 9286 6300, fax +61 8 9286 6333 or email admin@renaissanceminerals.com.au.