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Geopacific Resources (ASX:GPR) has posted a scoping study for its PNG-based gold project called Woodlark.
The company calculates Woodlark to have a pre-tax value of $625M at a A$2.9K gold price. Pre-tax IRR is calculated at 40.5%.
Revenue across the 12Y LOM – “undiscounted” – is calculated at A$3.3B, with a pre-tax cashflow of A$1.3B.
This is compared to a pre-production capital estimate of A$326M for mine development, a gold plant and other infrastructure costs.
Geopacific noted on Tuesday that volatility in the gold spot price, a lot of it upward in recent history, only makes the project look more attractive.
Geotechs anticipate producing over 1Moz of gold from open pit mining with 95,000 ounces pushed out per year via carbon-in-leach treatment downstream.
“This Study builds on the recent Mineral Resource and infrastructure improvements at the Project, and provides increased confidence that Woodlark is capable of generating strong financial returns for its stakeholders over a long-life operation,” Geopacific CEO James Fox said.
GPR last traded at 2.1cps.
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