Ord River optimistic over K2 gold deposit
PERTH (miningweekly.com) – A definitive feasibility study (DFS) on the K2 orebody, at the Plutonic Dome gold project, in Western Australia, has revealed that it could deliver some 37 000 oz of gold over a three-year period.
ASX-listed Ord River Resources is currently working to earn a 75% interest on the Plutonic Dome project from fellow listed Dampier Gold.
Ord River is sole funding up to A$6-million in exploration work over the next two years, to earn a 75% interest in the Plutonic Dome project, and will act as project manager for the sole-fund period, after which the party holding the highest joint venture interest will be the manager.
Ord River on Tuesday told shareholders that the DFS on K2 had indicated that the project would have a net present value of A$7.9-million and an internal rate of return of 161%.
Based on a gold price of A$1 400/oz, the project would generate a revenue of around A$7.6-million in its first year of operation, A$42.8-million in its second and A$50.57-million in its third year.
“The positive outcomes from the DFS at K2 have exemplified the approach taken by Ord to deliver shareholder value,” said Ord River MD Frank Zhu.
He noted that the company would maintain this development through the transformation from exploration to development at K2.
K2 currently hosts a resource estimate of some 326 000 t, grading 7.7 g/t gold for 81 000 oz of gold, and a reserve of 126 000 t, grading 6.5 g/t gold for 26 000 oz.
The permitting process for the K2 project was well under way, with the mining proposals for water abstraction submitted and all other relevant approvals being drafted for imminent submission.
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