- St Barbara (SBM) has announced its Simberi Sulphide Project will move to the feasibility study phase after an encouraging pre‐feasibility study
- In March, the company completed an updated version of the 2016 pre-feasibility study
- The study confirmed the potential for an extended mine life to the 2035 financial year
- The study also outlined a 38 per cent increase in sulphide ore reserves, and an 80 per cent increase in total gold produced
- The ASX 200 lister is focused on low capex solutions that utilise existing facilities
- St Barbara expects the next-stage feasibility study will be completed in December this year
- St Barbara’s shares are down a slight 0.40 per cent and are trading for $2.51 each
St Barbara (SBM) has announced its Simberi Sulphide Project will move to the feasibility study phase after an encouraging updated pre‐feasibility study.
In March this year, the company completed an update of the 2016 pre-feasibility study (PFS). The PFS was then validated by an independent review which has confirmed the potential to extend the project mine life to the 2035 financial year.
Other key changes from the 2016 PFS to the 2020 PFS include a 38 per cent increase in sulphide ore reserves from 1.3 million ounces to 1.8 million ounces, a 40 per cent increase in capital expenditure from US$100 million to between US$130 and $150 million.
The PFS also outlined an 80 per cent increase in total gold produced from 1 million ounces over eight years to 1.8 million ounces over 13 years.
The ASX 200-lister strategised the updated PFS to focus on low capex solutions that utilise existing infrastructure on the Simberi Island where the project is situated in Papua New Guinea.
Current infrastructure includes the airport, power station, village and wharf. The existing semi‐autogenous grinding (SAG) mill will be utilised in a new plant flowsheet to maintain the ability to process oxide and sulphide ores separately.
The PFS also indicates the preferred option is the production and sale of a concentrate. This avoids the need to establish downstream processing facilities on the island.
St Barbara expects to complete the next-stage feasibility study and Environmental and Social Impact Assessment in December this year.
The study anticipates a two-year construction phase, commencing in the 2021 March quarter. As previously reported, the Simberi mining lease (ML136) is valid until December 2028.
St Barbara’s shares are down a slight 0.40 per cent and are trading for $2.51 each at 1:15 pm AEST.