A pre-feasibility study released today by Peter Bradford-led Independence Group has confirmed the viability of an underground mine at the Tropicana gold project.
A pre-feasibility study released today by Peter Bradford-led Independence Group has confirmed the viability of an underground mine at the Tropicana gold project.
The study has detailed a capital expenditure of $95 million to build the mine beneath the Boston Shaker pits at Tropicana, which is a joint venture between Independence and AngloGold Ashanti.
AngloGold is ranked third in WA for gold production according to the BNiQ database.
Tropicana produced about 467,000 ounces of gold last financial year.
The new underground mine would add about 100,000oz of production annually over a seven-year mine life.
The initial portal development is anticipated to start from within the completed Tropicana pit in mid-2019, with full production expected in 2021.
The joint venture partners will now progress a feasibility study, which is scheduled for completion in the first half of 2019.
“The pre-feasibility study demonstrates the potential viability of underground mining beneath the Boston Shaker open pits that integrates with the existing open pit life-of-mine,” IGO managing director Mr Bradford said.
“Delivery of Boston Shaker underground will result in an improved grade and gold production profile from Tropicana from FY21.
“The pre-feasibility study is one of a number of work programs implemented at Tropicana to add value.
“The results are extremely encouraging, and we look forward to completing the feasibility study and potentially starting another exciting chapter at Tropicana.”
Shares in IGO were off 2.3 per cent at $3.86 each at 12.40pm AEDT today.
