Name of the Project
Penny’s Find gold project.

Location
The project is located about 50 km north-east of Kalgoorlie, in Western Australia.

Client
Empire Resources.

Project Description
A bankable feasibility study (BFS) on the Penny’s Find project has found the project to be technically sound and financially viable.

The BFS is based on a probable reserve of 146 000 t grading at 4.62 g/t gold.

The project has total mineral resources (opencut and underground) of 470 000 t grading at 4.42 g/t gold.

The study proposes conventional mining of a single openpit to a depth of 80 m using excavators and dump trucks, with ore transported to a nearby toll milling facility using conventional gravity and a carbon-in-leach circuit.

The openpit mine life is estimated 11 months.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has a payback of 8 months at a base case of A$1 500/oz.

Value
Capital expenditure has been estimated at A$1.5-million.

Duration
Not stated.

Latest Developments
Empire Resources has secured A$7.5-million in funding to bring its Penny’s Find gold mine into full production.

The company has signed a binding term sheet with Blue Capital Services, which will fund mining and related costs to a maximum of A$7.5-million, until the operation is cash-flow positive.

The agreement covers only the openpit mining operations and is subject to a formal mining services agreement being signed, as well as corporate overheads being funded by Empire.

Full-scale mining at Penny’s Find is expected to get under way in April.

The Penny’s Find project is expected to generate about A$7.6-million free cash flow in less than a year, based on a probable ore reserve of 146 000 t at 4.62 g/t gold.

Ore from the single openpit mine will be transported to the Lakewood Mill, owned by Golden Mile Milling, where it will be toll treated. A December toll treatment agreement allowed for between 15 000 t and 20 000 t of ore to be treated during each treatment campaign at the Lakewood Mill.

Empire is working to eventually take the Penny’s Find mine underground, as the gold mineralisation extends to at least 250 m down, where it remains open with a current known deeper resource inventory of 170 000 t at 5.40 g/t gold beneath the openpit.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Empire Resources, tel +61 8 9361 3100, fax +61 8 9361 3154 or email info@resourcesempire.com.au.