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Explaurum pegs A$125M, 5.3-year life in Tampia gold project study

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Explaurum pegs A$125M, 5.3-year life in Tampia gold project study

Explaurum Ltd. said May 30 that a feasibility study for the Tampia gold project in Western Australia pegged a pretax net present value, discounted at 8%, of A$125 million, an internal rate of return of 47% and a 1.5-year payback period.

Previously, a scoping study for Tampia released in November 2017 pegged a pretax net present value, discounted at 8%, of A$181 million, an internal rate of return of 64% and a 1.5-year payback period.

The study for the open pit operation was based on a gold price of A$1,650 per ounce, a maiden probable ore reserve of 7.2 million tonnes containing 485,000 ounces of gold grading 2.09 g/t of gold and an updated indicated and inferred resource of 11.7 million tonnes containing 675,000 ounces of gold grading 1.79 g/t of gold.

The miner earmarked A$119 million, plus A$10.8 million for contingency, for initial CapEx, with sustaining CapEx pegged at US$12.3 million for A$130.8 million in total CapEx for the initial 5.3-year operation.

C1 cash cost for the Tampia project is estimated at A$886 per ounce.

Production over the life of mine is targeted at 490,000 ounces of gold, less than the 502,000 ounces estimated in the scoping study. Average all-in sustaining cost is pegged at A$998 per ounce, higher than the A$888 per ounce in the previous study.

The project is expected to generate gross revenue of A$808 million, with life-of-mine EBITDA of A$327 million.

Explaurum will conduct additional exploration over new gold targets up to 2019, with additional resources expected to increase the mine's life.

A bankable feasibility study for the project is due for completion in October, with construction expected to begin in December, subject to development finance, regulatory and board approvals.