Name of the Project
Okvau gold project.

Location
The project is located in the Mondulkiri province, in eastern Cambodia.

Client
Renaissance Minerals, a wholly owned subsidiary of Emerald Resources.

Project Description
Okvau has an independent Joint Ore Reserves Committee-complaint indicated and inferred mineral resource estimate of 17.68-million tonnes grading 2.01 g/t gold, containing 1.14-million ounces at a 0.70 g/t gold cutoff.

The definitive feasibility study (DFS) is based entirely on probable reserves. Inferred resources, an estimated 7 000 oz within the final pit design, have not been included.

The DFS has confirmed the robust nature of the project with an initial operating life-of-mine of more than seven years, producing about 106 000 oz/y of gold on average.

The deposit will be mined using conventional openpit mining methods from one pit at a relatively constant mining rate. Mining will be undertaken by drilling and blasting ore and waste, with loading and hauling being undertaken by a mining contractor.

The proposed processing plant has a throughput of two-million tonnes a year and will use a single-stage crushing circuit and semiautogenous milling circuit, sulphide flotation and a regrind mill, followed by conventional cyanide leaching.

Tailings from the process plant will be disposed of in a dedicated tailings storage facility (TSF). The TSF will be located within a broad shallow valley to the south-east of the openpit, comprising a primary embankment to the south and a saddle embankment to the west. The waste rock dump will be located to the north and north-west of the TSF and will be adjacent to the TSF embankment to enhance the structural stability of the TSF.

The proposed TSF development concept contains the currently envisaged life-of-mine tailings and provision for freeboard to contain process water and stormwater inputs. Assuming a tailings settled density of about 1.40 t/m3, tailings production of 14.3-million tonnes will require a storage requirement of about 10.5-million cubic metres. The TSF has been designed to accommodate 17.8-million cubic metres, including freeboard.

The project has an initial operating mine life of 7.2 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a discount rate of 5%, of $223-million and an internal rate of return of 48%, with a payback of 26 months.

Value
Total development costs have been estimated at $98-million.

Duration
Development is expected to start in the fourth quarter of 2017, with gold production in early 2019.

Latest Developments
The Cambodian Ministry of Environment has granted the Okvau gold project environmental approval.

With an environmental contract signed, Emerald can progress to the final stages of its application for an industrial mining licence.

The final step will be the finalisation of a mineral investment agreement, which Emerald has said will provide long-term certainty, although it is not required for the development and operation of the Okvau project.

Under the terms of the environmental contract, Emerald has committed to making various yearly contributions to environmental and social funds to benefit local communities, as well as ongoing environmental management.

In addition, the company is required to provide surety to the Cambodian government for rehabilitation of the project upon closure. This surety will be provided progressively over five years.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Emerald Resources, tel +61 8 9286 6300, fax +61 8 9286 6333 or email info@emeraldresources.com.au.