Photo by: Gascoyne Resources
Name of the Project
Dalgaranga gold project.
Location
Dalgaranga greenstone belt, in the Murchison province of Western Australia.
Project Owner/s
Gold miner Gascoyne Resources.
Project Description
The project comprises two opencut mines, a new conventional semiautogenous milling circuit, and a gravity and carbon-in-leach processing plant with a throughput capacity of 2.5-million tonnes a year.
The processing plant will be located adjacent to the existing waste dump, to the east of the Gilbeys openpit, to minimise mine haulage costs.
The new mine design for the Gilbeys deposit has resulted in the Dalgaranga production target being increased to 15.3-million tonnes grading 1.3 g/t gold for 623 000 oz within the deposit, including the Gilbeys South and Golden Wings openpits.
As a result of the revised mine design and schedule, along with the increased throughput in the early years of the operation, a revised production target has been developed. The new production schedule will result in the project’s producing 244 000 oz in the first two years of operation, representing an increase of more than 35 000 oz during that time, compared with the production envisioned in the feasibility study mine schedule, and is expected to improve project economics significantly.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$177-million and an internal rate of return of 65%, based on a A$1 600/oz gold price, with a payback of 18 months.
Capital Expenditure
Preproduction capital costs for the processing plant and associated infrastructure are estimated at A$86-million, including contingencies of $6.1-million.
Planned Start/End Date
The company suspended operations at Dalgaranga in November 2022, transitioning the 2.5-million-tonne-a-year mill to care and maintenance.
Latest Developments
Spartan Resources announced a A$25-million institutional placement on November 17 to accelerate its growth strategy.
The company received firm commitments from domestic and international resource investors to raise A$25-million through a targeted institutional placement at A$0.40 a share.
The proceeds will be used to underpin an expanded exploration campaign at Dalgaranga in 2024, including drilling Never Never Deeps and expanding this high-grade resource beyond the mineral resource estimate that is scheduled for December.
Spartan will work towards completing a feasibility study on a fully integrated restart of Dalgaranga, based on its new high-grade strategy.
On completion of the placement, Spartan will have a proforma cash position of A$53.2-million
Key Contracts, Suppliers and Consultants
GR Engineering (processing plant); and Zenith Energy (gas-fired power station).
Contact Details for Project Information
Gascogne Resources, tel +61 8 9481 3434, fax +61 8 9481 0411 or email admin@gascoyneresources.com.au.