Name and Location
Thunderbox gold project, Australia.

Client
Saracen Mineral Holdings.

Project Description
A feasibility study on Stage 1 of the Thunderbox operations has been completed, with the study showing robust economics over an initial 4.5-year mine life. It further envisages the development of a large openpit on the Thunderbox deposit, delivering 597 000 oz.

The start of mining will coincide with the completion of the Whirling Dervish openpit, allowing for a seamless integration between operations.

Several opportunities exist to extend the project life beyond Stage 1, including a bulk underground mine at Thunderbox and satellite openpit opportunities.

Stages 2 and 3 could potentially extend production to more than one-million ounces over an eight-year mine life at an average production rate of 126 000 oz/y.

Net Present Value/Internal Rate of Return
Stage 1 has a net present value, at an 8% discount rate, of A$120-million and an internal rate of return of 59%.

Value
A$65-million.

Duration
First gold from Stage 1 is planned for July 2016.

Latest Developments
Saracen expects first gold production from its Thunderbox gold mine in the June 2016 quarter, three months ahead of schedule.

The project is expected to be commissioned in the March quarter, as significant progress has been made in mining, plant refurbishment and infrastructure.

Mining started in early July, also ahead of schedule and, to date, material movement is about 7% ahead of budget.

MD Raleigh Finlayson has said excellent progress made at Thunderbox has placed Saracen in an outstanding position.

Meanwhile, Saracen has also taken advantage of the recent increase in the Australian gold price, hedging a further 40 000 oz at an average price of A$1 600/oz to further underpin the first year of production at Thunderbox.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project is ahead of schedule.

Contact Details for Project Information
Saracen Mineral Holdings, tel +61 8 6229 9100 or fax +61 8 6229 9199.