New Murchison Gold (ASX:NMG) released a feasibility study for the Crown Prince deposit, located at its flagship Garden Gully gold project near Meekatharra, Western Australia, on Monday (February 3).
In a press release, the company says the feasibility study was completed in January, and outlines an updated resource estimate of 2.205 million tonnes at 3.9 grams per tonne for 279,000 ounces of gold.
The feasibility study for the asset also outlines undiscounted pre-tax cashflow of AU$226 million over a period of 30 months at the current spot gold price of AU$4,385 per ounce.
Capital required to start production at Crown Prince stands at AU$5.4 million.
“The results of the Feasibility Study provide a sound basis for proceeding with the commencement of mining at Crown Prince,” said New Murchison Gold CEO Alex Passmore in a statement.
“Feasibility work to expand the mineral resource, optimise the overall mine plan and derisk the project in 2024 has contributed to successful advancement of the project,” he added.
New Murchison has an ore purchase deal with Westgold Resources (ASX:WGX,OTC Pink:WGXRF). According to the company, it shortens the path to production, with material being taken to Westgold’s Bluebird mill.
The firm sees Crown Prince as the most advanced prospect in the 677 square kilometre Garden Gully tenure package.
“The deposit is modest in size but high grade, particularly in the Southeast Zone (SEZ) supporting early positive cash flows. The SEZ is a new discovery where ore is available close to the surface, so 2025 will be another year of rapid progress to production for New Murchison Gold,” Passmore elaborated in Monday’s release.
Mining and environmental approval documentation for Crown Prince was submitted to relevant parties in late 2024.
Mining is expected to commence this June, while first ore sales are scheduled for August.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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