Perth-based Panoramic Resources has released an updated scoping study on its renamed Gum Creek gold project in the Murchison region, which details plans for a smaller operation with a lower capex.
Perth-based Panoramic Resources has released an updated scoping study on its renamed Gum Creek gold project in the Murchison region, which details plans for a smaller operation with a lower capex.
The scoping study estimates a $62 million capex to bring Gum Creek, formerly known as the Gidgee gold project, into production.
The capex is about half of what was estimated in a previous scoping study on the project, which was completed in August 2012.
The new study details specifics for a smaller operation, specifically a 52 per cent reduction in overall production to 290,000 ounces of gold over the project’s mine life, which has been reduced by one year to six.
The project currently includes a 600,000 tonnes per annum processing facility, which is not in operation, with Panoramic planning to build a new 1.05mtpa facility.
However, in the revised study today, Panoramic said it now plans to build a smaller 800,000tpa plant.
“The (new) study also assumes the relocation of some accommodation and facilities from other Panoramic sites to reduce capital costs,” the company said in a statement.
“The aim of the study was to focus on production from free milling resources only to reduce the initial construction capital whilst retaining optionality of production from the Wilsons refractory resource at a later date.
“Historic production of gold from free milling sources was in excess of 1 million ounces at high metallurgical recoveries.
“This information, together with test work done by the company, provides support for the metallurgical recoveries used in the study.”
The company said the results of the study demonstrated a project with attractive economic outcomes and future optionality for production from either free milling or refractory resources.
Panoramic shares closed 10.7 per cent lower to 12.5 cents each.
