Larvotto Resources Ltd (ASX:LRV) has completed a prefeasibility study (PFS) on its Hillgrove gold and antimony project in New South Wales, which it says shows potential for a low-cost, high-grade operation building on a maiden ore reserve of 606,000 ounces of gold equivalent at 6.0 grams per tonne of the same.
Larvotto is anticipating a capital expenditure (CAPEX) of $73 million to get Hillgrove under operation, looking ahead to a target production rate of more than 80,000 ounces of gold equivalent per year.
Additionally, the PFS posits all-in sustaining costs (AISC) for the Life of Mine (LOM) to be set at less than $900 per ounce for gold ounces, while project payback is set at less than 2 years.
Larvotto argued that these fairly economic settings were underpinned by the existence of extensive surface and underground infrastructure and established permitting at the project.
In terms of net present value (NPV), Hillgrove’s was set (post-tax) at $157M, while the internal rate of return (IRR) was 50%. Using the spot price, this increased to and NPV of $383M and IRR 114%.
Managing Director Ron Heeks said the study underscored Larvotto’s dedication to developing a viable operation at this site.
“Only seven months since our acquisition of the significant Hillgrove Project, Larvotto has produced a compelling pre-feasibility study that highlights the financial and near-term gold and antimony development potential of the project,” he said.
“This achievement has only been possible due to the considerable efforts and diligence of the Larvotto team, which includes numerous external consultants and advisors.”
The company has now commenced definitive feasibility (DFS) and anticipates the targeting of first ore in 2026.
Larvotto has been trading at 12 cents.