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WIN Metals (ASX:WIN) has this week secured “gamechanging” confirmation that it can develop a standalone gold operation in the Kimberley in Western Australia, with “significant opportunities for upside identified.”
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The Australian explorer has been looking into the technical and financial aspects of its newly-acquired Butchers Creek project in the Kimberley.
Latest studies have delivered all good news: WIN should be able to establish a mine in the project area that will last for nine years. Expectations are the explorer could process as much as 3.29 million tonnes of ore through that time.
Peak annual production was forecast at 37,000 ounces by year five, the same study said, with average production hitting around 33K ounces from then on.
All that wraps up to mean WIN could (assuming gold comes in at around A$5,385 per ounce) make as much as $288 million in pretax free cash flow and a net present value of as much as $143 million at an 8% discount.
“The numbers speak for themselves,” WIN’s CEO, Steve Norregaard, declared. “[We have] robust projected cashflow and a long life of mine, underpinned by a high confidence resource with substantial upside.”
“What excites us most now is the scale of the opportunity ahead,” he continued. “A nine-year mine plan with peak production forecast at 37,000 ounces of gold per year [and] ongoing exploration at both Butchers Creek and Gold Crown could take this project to an entirely new level.
“Each additional drill hole has the potential to drive resource growth, extend the life of mine, and increase cash flow for years to come.
“We are entering a new phase… with strong momentum and energy.”
The Market Link understands the funding requirements are set at around $142 million, with WIN hoping to bring in through a mix of debt and equity.
No development timeline has been pencilled in yet, with feasibility studies and permitting both still needing to be finished. WIN is hoping it can turn its exploration licences into mining projects within the next 18 months.
Today, WIN will open Wednesday’s morning trade at 4.2cps.
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The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
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