Meeka sets production target at Murchison
PERTH (miningweekly.com) – A feasibility study into the Murchison gold project, in Western Australia, has estimated that it could produce 663 000 oz over an initial mine life of just over nine years.
Junior Meeka Metals told shareholders that the study was based on the development of a standalone one-million tonne a year carbon-in-leach operation, which is estimated to have a pre-production capital cost of A$137-million and a post-production capital cost of A$371-million.
Average gold production is expected to reach 80 000 oz/y in the first eight years of operations, and over 66 000 oz/y over the entire mine life. Based on a gold price of A$2 750/oz, the project will have a post-tax net present value of A$171-million and an internal rate of return of 30%, with a pay-back period of 22 months.
“Since we acquired the project in 2021 we have expanded the mineral resource by over 50% and with the release of this study, outlined a straightforward development strategy that delivers meaningful production and financial outcomes for the company over an initial 9.3 years,” said Meeka MD Tim Davidson.
“With over 92% of production in the first three years coming from the higher confidence measured and indicated mineral resources, and the release of a 410 000 oz ore reserve with this study, we believe we have a strong foundation on which to develop. Additionally, the mineral resources that support the planned underground mines remain open at depth with strong opportunity to grow,” he added.
“We are now progressing the remaining environmental studies required to permit the project and investigating opportunities to accelerate the project development timeline through toll milling of higher-grade starter pits. Drilling for mineral resource upgrade and growth will also advance over the coming months.”
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