Cortona Resources has completed a positive scoping study for what it calls a potential $30 million underground mine development on the Dargues Reef Main Lode.
Located 60km east of Canberra in New South Wales, Dargues Reef is part of Cortona’s 100%-owned Majors Creek Gold Project.
The study estimated production for the operation is 188,000 ounces, over an initial mine life of 4.5 years with operating costs at $470 per ounce.
“Cortona has taken a significant step towards joining the ranks of Australian gold producers,” Cortona managing director Peter van der Borgh said.
“The results of the scoping study indicate that Dargues Reef has the potential to be a highly profitable gold mine with plenty of upside.”
According to the company, the study confirmed the development is technically and economically viable, using a cut-off grade of 3.5g per tonne and assuming 10% mining dilution and an average 95% gold recovery.
Annualised production would be in the order of 40,000 to 50,000 ounces with an estimated pre-production capital cost of approximately $30 million.
This initial mine development would deliver an estimated $68.4 million pre-tax profit over the initial lifespan, generating a 68% return based on the $1,150 per ounce gold price, the company said.