Name of the Project
Tucano gold process plant upgrade project.

Location
Northern Brazil.

Client
Beadell Resources.

Project Description
A feasibility study completed on the Tucano gold processing plant has demonstrated the viability of the project. The study proposes the upgrade of the existing plant by incorporating an additional 6 MW ball mill, a high-rate thickener, another leach tank and an oxygen sparging system.

Throughput will be maintained at 3.6-million tonnes a year and recoveries are projected to increase to 93% from the current budgeted recovery of 88%.

As the mine deepens, there will be an increasing amount of sulphide ore, which will require a finer grind to achieve economic gold recoveries.

The new ball mill will allow for a grind size of 75 µm and will enable the mine to be fully optimised for any combination of sulphide and oxide ores. The finer grind requires longer residency in the leach circuit, which is facilitated by the additional carbon-in-leach (CIL) tank. Throughput will remain at 450 t/h for a nominal throughput of 3.6-million tonnes a year.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an incremental estimated post-tax net present value, at a 5% discount rate, of $127-million and an estimated internal rate of return of 138%, with a payback of 14 months.

Value
The preproduction capital cost is estimated at $27.6-million.

Duration
It is expected that the project will be commissioned in mid-2018.

Latest Developments
Beadell Resources has completed the final stages of its Tucano plant upgrade.

The construction of the preleach thickener, CIL tank and oxygen tank that comprised the final stages of the plant upgrade have now been completed and commissioned.

The construction timeline was achieved despite numerous engineering, procurement and financial control challenges, which resulted from the previous contractor managing the upgrade.

The completion of the plant upgrade will provide Beadell with the foundation for the Tucano optimisation, allowing for greater ore-type processing flexibility.

However, the company may need to spend an additional $100 000 on spargers, as issues with the effectiveness of the oxygen spargers were identified during commissioning, which limit the injection of oxygen into the leach tanks.

The initial sparger selection by the previous contractor managing the plant upgrade may not be ideal for the oxygen plant configuration, and if a solution cannot be found, new spargers will have to be installed.

Beadell is currently the takeover target of TSX- and NYSE-listed Great Silver Panther, which is offering Beadell shareholders 0.0619 common shares in Great Panther for each Beadell share held, implying an offer of $105-million.

Key Contracts and Suppliers
Outotec Australia (ball mill and associated equipment).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Beadell Mines, tel +61 8 9429 0800 or email info@beadellresources.com.au.