Primary Gold Ltd. said Oct. 17 that a prefeasibilty study for the Coolgardie gold project in Western Australia estimated a posttax net present value, discounted at 8%, of A$14.8 million.
The study was based on a resource of 1.3 million tonnes grading 1.7 g/t of gold for 69,000 contained ounces and at a price of A$1,600 per ounce of gold. The company also released a maiden ore reserve of 58,000 ounces of gold contained in 1.1 million tonnes grading 1.7 g/t in the proved and probable categories, based on the measured, indicated and inferred resources.
CapEx is pegged at A$850,000, A$750,000 of which will be deferred by up to three months after production start.
Over a 28-month mine life, the company targets to recover 65,000 ounces of gold at all-in sustaining costs of A$86.2 million, or A$1,322 per ounce.
Revenue from the project's life is expected at US$104.3 million.
The open pit mine is slated to begin first gold production in the fourth quarter.