Star Minerals Restricted (ASX: SMS, “the Firm” or “Star Minerals”) is happy to current the vary of outcomes of a Scoping Research for open-pit mining and third-party toll therapy of the Tumblegum South gold deposit (“Tumblegum South” or “the Challenge”) which is situated roughly 40km south of Meekatharra within the Murchison district of Western Australia.
The constructive outcomes of this Scoping Research present a foundation to refine materials inputs and improve mission economics for the Tumblegum South gold deposit.
- Varied choices utilising third-party processing vegetation working underneath a toll therapy settlement have been thought-about. There are at the moment two energetic processing vegetation with a radius of 50km to 150km from Tumblegum South. A spread of outcomes have been outlined based mostly on gold worth, and processing price together with trucking prices.
- At gold costs from AUD$2,250 to AUD$3,000/oz, the Manufacturing Goal for the Challenge ranges from roughly:
- 116kt at 2.25g/t producing 7.6koz gold, to
- 286kt at 2.00g/t producing 16.6koz gold.
- The Manufacturing Goal generates an undiscounted accrued money surplus after fee of all working capital prices, however excluding pre-mining capital necessities, of roughly $7.2M to $16.3M.
- Mining is contemplated as a single marketing campaign over roughly 18-months.
- Pre-mining capital and start-up prices are estimated to be roughly $0.7M to $1.5M.
- Sensitivity of the Base Case situation to gold worth was assessed. Outcomes recommend that mission economics are strong for a broad vary of gold costs.
Chair Ian Stuart commented:
The Scoping Research has demonstrated the worth and viability of the Tumblegum South Gold Challenge over a broad vary of gold worth. Star can now take the subsequent steps to monetising this asset and extra precisely assess varied methods to realize this, together with sale, partial sale or three way partnership of the Challenge.
The Scoping Research additionally serves as foundation for evaluation by third events wishing to judge the Challenge as potential ore feed for present processing operations.
We sit up for constructing on the data gained by this Research and quickly advancing the Challenge to commercialisation.
Star commissioned Orelogy Consulting Pty Ltd, a Western Australian based mostly mine planning consulting agency with intensive expertise evaluating mining initiatives throughout Australia, to undertake a Scoping Research evaluating potential open pit mining at Tumblegum South and ore processing through toll therapy at an present plant.
The processing vegetation thought-about for this examine are situated inside a radius of 50-150km from Tumblegum South. No settlement has been entered into on the time of writing, and there’s no assure an settlement will probably be entered into. It’s famous the diluted Tumblegum South Manufacturing Goal at 2.01g/t compares favourably with head grade mined at quite a lot of vegetation within the Murchison and has the potential to offer beneficial mill feed and ore mixing alternatives.
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