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RNI doubles WA gold project mine life

6th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Updated feasibility studies for ASX-listed Resource and Investment’s (RNI’s) Grovenor and Peak Hill gold projects, in Western Australia, have doubled the expected mine life to an initial eight years.

RNI said on Wednesday that the feasibility studies were undertaken to evaluate the economics of mining various resources from within the two project areas, which have a combined gold resource of about two-million ounces.

Multiple processing options were examined involving the existing one-million-tonne-a-year carbon-in-leach facility, as well as various leaching options. The studies concluded that using RNI’s carbon-in-leach processing plant and heap leaching lower-grade Grosvenor and Peak Hill mineralisation would give the best economic outcome.

The projects were expected to produce about 850 000 oz over their eight-year mine-life, providing life-of-mine revenue of over A$1.1-billion and net cash flows of over A$200-million.

Over the life of the mine, the project would have a weighted average cash cost of around A$990/oz, and a two-year payback was expected on the preproduction capital expenditure (capex) of A$40.5-million.

“These studies show that the Grosvenor and Peak Hill gold projects are economic and feasible to develop, using multiprocessing options,” said RNI chairperson Miles Kennedy.

He noted that the results provided a pathway to sustainable gold production, which was both low cost and near term.

“The economics of developing these projects are further enhanced by the significant tax losses RNI has, which can be applied against future gold production earnings.”

Kennedy added that following recent discussions with third parties, the company also believed that there was scope for further reducing the capex requirements of the project.

RNI and its advisers were currently in discussions with financiers and potential funders in order to advance the gold projects.

Edited by Creamer Media Reporter

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