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Thunderbox gold project, Australia

13th May 2016

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Thunderbox gold project, Australia.

Client
Saracen Mineral Holdings.

Project Description
A feasibility study on Stage 1 of the Thunderbox operations has shown 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$63.4-million.

Duration
The Thunderbox gold mine reached its commercial production milestone at the start of April 2016.

The project, which was expected to pour its first gold in June, is now operating at its nameplate capacity of 2.5-million tonnes a year, and produced an estimated 7 026 oz of gold during April.

Latest Developments
MD Raleigh Finlayson has said that the Thunderbox mine has transformed Saracen into a leading midtier Australian gold producer.

Reaching commercial production at a cost of A$63.4-million, Thunderbox will enable Saracen to get closer to increasing its production rates to about 300 000 oz/y at an all-in sustaining cost of about A$1 075/oz.

Key Contracts and Suppliers
None stated.

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

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

Edited by Creamer Media Reporter

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