Explaurum Ltd. said Dec. 14 that an updated feasibility study for the Tampia gold project in Western Australia outlined a posttax net present value, discounted at 8%, of approximately A$103 million, a 46% internal rate of return, and a 1.25-year payback period.
In the initial feasibility study, released in May, posttax NPV, discounted at 8%, stood at A$92 million, and IRR at 38%, with a 1.5-year payback period.
The improved study for the open pit operation incorporated further metallurgical test work, mine design and scheduling together with refined capital and operating cost estimates, as well as incorporation of the Mace supergene deposit.
Earlier this month, the Australian explorer posted a maiden resource for the Mace deposit of 400,000 tonnes grading 1.4 g/t gold for 20,000 contained ounces of gold in the inferred category.
Initial CapEx for the operation was slashed to A$111 million, from A$119 million, with sustaining CapEx of A$6.5 million. Total CapEx for the operation, however, is now pegged at A$133.2 million, an increase from A$130.3 million from the May feasibility study.
Average gold production for 4.67-year operation, with an ore throughput of 1.52 million tonnes per annum, is targeted at 103,157 ounces per year at a C1 cash cost of A$825 per ounce. Total operating cost is pegged at A$55.67 per tonne.
The operation is expected to generate free cash flow of A$226 million, an improvement from the A$196 million under the previous projection.
An exploration program, which will target extensions to the Mace resource, as well as advancing exploration on the A8 target, has started.
Meanwhile, Explaurum said its board will respond to Ramelius Resources Ltd.'s sweetened takeover offer of 13.4 cents per share in due course. The increased offer included a cash payment of 2 cents per share, in addition to the existing offer of 1 Ramelius share for every 4 Explaurum shares.