Barton Gold (ASX:BGD) has released its scoping study for its Tunkillia Gold Project (TGP), the results of which it described at positive on Tuesday.
The company predicts a $374M CapEx burden – “before owner costs, pre-strip and contingencies” – compared to an ‘initial net present value’ of $512M on a 40% IRR and 1.9 year payback on a pre-tax basis.
The company expects a 6.4Y life of mine (LOM) and 8Y project life including construction with the capacity to process 30.7Mt of ore for total payable metal of 833Koz gold. The company has far more silver, at 1,993Koz.
The company expects to make 130Koz and 311Koz of each respectively per annum with the all in cost for gold per ounce at $1,917oz.
“Even based upon initial processing cost assumptions that Barton considers to be fairly conservative, and only a 6 year initial mine life, Tunkillia delivers strong returns, competitive AISC performance and a 1.9 year payback,” Barton MD Alex Scanlon said.
“This is only a preliminary study and we have already identified multiple areas for potential optimisation in terms of process design, capital costs, operating costs and growth in the life of mine and materials schedule.”
BGD last traded at 25cps.