Magnetic Resources NL (ASX: MAU) has announced the results of a prefeasibility study (PFS) on its 100% owned Lady Julie Gold Project, situated in the Laverton, Western Australia gold region. The outcomes of the study show a technically and financially robust project.
Managing director, George Sakalidis, said, “The excellent PFS outcome demonstrates that Magnetic’s Lady Julie Gold Project is one of the highest margins, undeveloped gold projects in Australia. The project’s low-cost profile and strong financial return metrics are primarily driven by the extraordinary near-surface, high-grade nature of the Lady Julie Central and Lady Julie North 4 deposits. This low-cost profile places the project in the bottom half of the cost curve of gold producers in Australia.”
Highlights of the PFS include:
- A financially robust project with low-cost, high margin gold production of 720,000oz (averaging 87,000 oz/year) over a nine year life of mine (LOM)
- Pre-tax IRR of 85% at A$2,800/oz, increasing to 108% at the current spot price of A$3,100/oz
- Total EBITDA of A$982M at A$2,800/oz, increasing to A$1,191M at the current spot price of ~A$3,100/oz
- Life of mine average C1 (operating) cost of A$1,434/oz and AISC of A$1,445/oz
- Pre-tax NPV8 of $547M at A$2,800/oz, increasing to A$690M at the current spot price of ~A$3,100/oz
- Open pit mining inventory of 13.6Mt @1.78g/t Au, containing 773,700oz gold. Total life of mine production includes approximately 77% indicated and 23% of inferred mineral resource, with the initial five years of production from the indicated resource
A mining proposal will now be prepared and submitted to advance a further mining lease application and regulatory approval to allow for mining.
To find out more, please visit www.magres.com.au
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