- Breaker Resources (BRB) reports “compelling outcomes” from a recent open-pit optimisation study on the near-surface components of its Bombora and Claypan gold deposits in WA
- The study looked at the potential for open-pit mining, the optimal size of a gold processing plant and what depth a transition from open-pit mining to underground mining was likely to be the most profitable
- Assuming a 1.8 million tonnes per annum gold processing rate, the study shows an open-pit shell of 215 metres deep capturing 8.4 million tonnes of ore at 1.6 g/t (for 427,000 ounces of gold) generating estimated pre-tax cash flows of about $385 million over four years
- Managing Director Tom Sanders says Breaker now has a “solid foundation for a long-term standalone mining project with scope for attractive margins at current gold prices”
- BRB shares up four per cent to 26 cents
Breaker Resources (BRB) has “confirmed positive outcomes” from a recently completed open-pit optimisation study on the near-surface components of its Bombora and Claypan gold deposits in Western Australia.
The deposits form part of the company’s Lake Roe gold project.
Breaker’s study assessed the potential for open-pit mining, the optimal size of a gold processing plant and what depth a transition from open-pit mining to underground mining was likely to be the most profitable.
It was based on Lake Roe’s recently updated mineral resource estimate (MRE) of 31.9 million tonnes grading 1.6 grams per tonne gold for 1.68 million ounces of contained gold, of which the Bombora and Claypan deposits speak for 893,000 ounces.
Assuming a 1.8 million tonnes per annum processing rate, the study showed an open-pit shell of 215 metres deep capturing 8.4 million tonnes of ore at 1.6 g/t (for 427,000 ounces) generating estimated pre-tax cash flows of about $385 million over four years — excluding capital costs.
The mine production cost was forecast to average $1540 per ounce.
Managing Director Tom Sanders said the study highlighted the “enormous value” to be unlocked at the Lake Roe project.
“The outstanding potential free cash flow generation is a game changer for Breaker and opens up a range of development and processing options,” he said.
“We now have a solid foundation for a long-term stand-alone mining project with scope for attractive margins at current gold prices and with potential for material enhancement from underground mining.”
Breaker said preliminary underground mining studies were under way.
BRB shares were up four per cent to 26 cents at 11:52 am AEST.