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- Alt Resources has delivered the maiden ore reserves and preliminary feasibility study (PFS) for its Mt Ida and Bottle Creek gold project in WA
- With a capex outlay of $73.4 million, the project would generate a 41 per cent post-tax internal rate of return (IRR) over a seven-year life of mine, with a post-tax payback of 39 months
- The current ore reserve is estimated at 272,000 ounces gold and 2.1 million ounces of silver
- With some significant potential to expand ore reserves and the possibility of extending the life of the processing facility, the project has considerable upside beyond the scope of the PFS
- On a tough day for the gold miners, Alt Resources remained grey at 4.7 cents per share by market close
Alt Resources has delivered the maiden ore reserves and preliminary feasibility study (PFS) for its Mt Ida and Bottle Creek gold project in WA.
Robust economics
While most gold projects are looking promising given the historically high gold prices at the moment, Alt’s PFS has regardless delivered some solid numbers, and some potential future upside.
Modelled on a gold price of $2305 per ounce and a capex outlay of $73.4 million, the project would generate a 41 per cent post-tax internal rate of return (IRR) over a seven-year life of mine, with a post-tax payback of 39 months.
While the mine would take around half its current projected lifetime to pay off, the fact the project would incorporate a 750,000 tonne per annum processing facility may pay dividends in the longer run.
Future revenues could be generated by providing an economical means to process ores from stranded assets in the region.
Alt Resources CEO, James Anderson, says the project could be a boon for the company, as well as the wider region.
“The PFS and Maiden Ore Reserve confirms the Mt Ida Bottle Creek Gold Project as a promising undeveloped gold asset which is technically and financially sound,” James said.
“The work the company has done over the past three years culminating in this PFS demonstrates the potential for this under-explored Northern Goldfields region,” he added.
“The future development of a treatment plant will encourage other stranded assets located in the region to be further explored and developed.”
CEO, James Anderson
Rich resource
Aside from the potential for an extended life for the proposed processing facility, there’s also the possibility of extending the resources of the project itself.
Currently, the ore reserve is estimated at 4.61 million tonnes of ore at 1.8 grams per tonne (g/t) gold and 15.8 g/t silver, for 272,000 ounces gold and 2.1 million ounces of silver.
The company believes there remains significant potential to grow resources and reserves across the project through further exploration.
With an all-in sustaining cost of $1396 per ounce of gold, the project seems more than sustainable across its lifetime even if prices settle down a little after the current highs.
With potential to extend known resources and the life of the processing facility, the project’s economics could look even better in time.
On a tough day for the gold miners, Alt Resources remained grey at 4.7 cents per share by market close.
