Mincor has secured approvals for its 100 per cent-owned Widgiemooltha gold project in Western Australia, managed by Goldfields Technical Services (GTS).
The announcement comes following the completion of a successful enhanced feasibility study (EFS), the outcomes of which included pre-production capital costs of $2.2 million, all-in sustaining costs of $1133/ounce (oz), and after-tax cash flow of $30.7 million (based on an average gold price of $1600/oz).
Further outcomes pinned Widgiemooltha’s mine life at 29 months, with an average grade of 2.7 grams per tonne (g/t) of gold, 78,200oz overall.
Peter Muccilli, managing director of Mincor, said that the project would allow Mincor to attain significant value through its choice of an experienced project manager (GTS) and its low-risk development strategy, which possesses “very low upfront capital requirement [that] can be funded from existing cash reserves.”
Muccilli added that the project would also provide Mincor with a path back to short-term cash flow.
“With startup gold reserves of 77,000oz, the Widgimooltha gold project is expected to generate cash-flow for the company for the next two and a half years, with potential to extend mine life through further exploration success,” he said.
“Mincor’s high-quality land holdings continue to provide us with exciting opportunities for growth.”
In addition to gold, Mincor also mines nickel, operating in this capacity in the Kambalda nickel district where it has an offtake agreement with BHP. The company also owns the Tottenham copper-gold project in the Lachlan Ford Belt, New South Wales.