Name of the Project
Rothsay gold project.

Location
Western Australia’s Midwest region.

Client
EganStreet.

Project Description
The project has a maiden start-up ore reserve of 1.4-million tonnes grading 4.4 g/t gold.

It will target unmined fresh material for gold production of 280 000 oz over an initial 6.5-year mine life.

Potential Job Creation
About 135 jobs are expected to be created.

Net Present Value/Internal Rate of Return
The pretax net present value, at a 5% discount rate, is A$80.4-million and the internal rate of return is 57%, with a payback of 1.5 years.

Value
Initial capital is estimated at A$39.7-million.

Duration
First gold production is targeted for the first quarter of 2020.

Latest Developments
An updated definitive feasibility study (DFS) on the Rothsay gold project, in Western Australia, has increased the project’s projected gold production from 250 000 oz to 289 000 oz.

The updated DFS has estimated a mine life of seven years, with the pretax cash flow expected to increase to A$116-million from revenues of A$470-million, based on the same gold price and exchange rate assumptions of the original DFS.

The project’s capital cost expenditure has increased from A$36.1-million to A$39.7-million, with the initial capital expenditure now based on a fixed-price contracting strategy, and still included a A$3.6-million contingency.

The project remains on target to produce its first gold in the first quarter of 2020.

“This most recent update to the DFS is compelling in that it is off the back of a very modest infill and extensional exploration programme,” EganStreet MD Marc Ducler has said.

“With the project estimation achieving further maturity and all our main work packages either in contact or ready to execute, the financial metrics of the Rothsay gold project continue to strengthen despite the slight increase in capital costs.”

Ducler has said that, coupled with the future potential to deliver more growth once in production, and the buoyant gold price, it is an exciting time to be developing the Rothsay project.

Meanwhile, negotiations for debt funding are ongoing, with EganStreet receiving indicative nonbinding terms for conventional debt instruments of up to A$35-million.

Construction of Rothsay is expected to start once all the outstanding government approvals have been received.

Key Contracts and Suppliers
Cube Consulting (mineral resource estimate); Symbiosis Environmental Services (environment approvals); Turner Mining & Geotechnical (geotechnical review); Entech, Machsena Engineering Solutions and EganStreet (mining); CPC Project Design and EganStreet (process plant, power provision and high-voltage reticulation), Knight Piésold (tailings dam and hydrology); RockWater (hydrogeology); Maintenance and Construction Services Australia (surface infrastructure); and EganStreet and Entech (financial model).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
EganStreet, tel +61 8 6424 8130, fax +61 8 6500 9912 or email info@eganstreet.com.au.