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Beacon Minerals to accelerate exploration at Jaurdi Gold

Industrial
ASX:BCN      MCAP $112.7M
18 August 2019 23:44 (AEST)

Beacon Minerals has accelerated exploration and resource definition programs at its Jaurdi Gold Project.

The acceleration of exploration and evaluation activities follows Beacon receiving firm commitments from investors for an $8 million placement at an issue of 0.042 cents per share. Paterson Securities acted as the Lead Manager to the placement.

“We thank all shareholders for their ongoing support and welcome our new investors as we continue to focus on achieving full gold production at our Jaurdi Gold Project whilst also ensuring we avail ourselves of value for money, organic growth opportunities as they arise,” Managing Director Graham McGarry said.

The Jaurdi Gold Project is wholly-owned by Beacon and is located 35 kilometres north west of Coolgardie and 75 kilometres west of Kalgoorlie, Western Australia.

According to the completed pre-feasibility study (PFS), Jaurdi is expected to be a highly prospective project with an initial five-year mine life. Beacon, however, will continue to evaluate opportunities to increase the mine life.

Specifically, the PFS results outline a forecast life of Mine (LOM) surplus operating cash flow of $98.4 million at a gold price of $1,650 per ounce versus the current gold price of over $2,200.

Beacon is an emerging Australian gold producer whose main focus is bringing Jaurdi to gold production.

The company is currently in the commissioning phase for its 500,000 tpa gold processing facility at Jaurdi.

Beacon will also use the placement funds to accelerate exploration at its newly optioned Stockdale tenement and the P16/2925 and P16/2926 prospecting licences acquired in late July 2019.

In light of accelerating the Jaurdi Gold Project to gold production, Beacon has appointed Alexander McCulloch as the Executive Director of Development. Alex was appointed Project Manager of Jaurdi in January 2017 during the due diligence option period.

Alex’s expertise and contacts will support the company’s objective moving forward.

“The appointment of Alex to the Board as our development director will significantly enhance Beacon’s objective of extending the current 5 year mine life by identifying, evaluating and developing a value for money, organic growth opportunities,” Graham said.

“Beacon is in a very unique situation with the commissioning of the plant advanced and a large tenement area that has remained under explored,” he concluded.

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