Jack McGinn, 15 April 2015
GOLDEN Cross Resources shares jumped almost 10% today after the company released the details of a scoping study for its Copper Hill copper-gold project in New South Wales.
The scoping study outlined the economics of Copper Hill developments at both a 2Mt and 3Mt per annum project level.
Under a 2Mtpa schedule, the mine has an initial life of 13 years, while 3Mtpa returns a shorter, nine year mine life based on a recently updated indicated and inferred resource of 28Mt at 0.56% copper and 0.53 grams per tonne gold for 160,000t copper and 320 ounces gold at a 0.4% copper cut off.
A 2Mtpa operation would have a capital cost of $A130.5 million accounting for a $73.9 million process plant, $44.7 million in other and owner costs and $11.9 million in contingency.
The 3Mtpa option would have a higher development cost of $163.5 million comprising $94.2 million for the process plant, $54.4 million in owner and other costs and $14.9 million in contingency.
Operating costs would come to $30.80 per tonne of mill feed under the 2Mtpa scenario, and $28/t under a 3Mtpa project.
Under both strategic schedules, recovery rates would peak in the first year of production at around 0.65% copper and 0.85gpt gold before dropping away to slightly above 0.4% copper and 0.5gpt gold in the final year of both.
Mill recovery is anticipated to sit above 80% for copper for the project’s life under both scenarios, while gold recoveries would fluctuate, peaking at just under 80% in the second year of the 2Mtpa operation and at a similar level in the first year of a 3Mtpa project.
The project’s power needs would be serviced by a 132Kv sub-station 4.5km to the southeast, while road access in the form of the Mitchell Highway runs through the project area.
Golden Cross is said the results of the scoping study were positive and was now working to fund and commence a prefeasibility study covering both project options as soon as possible.
Shares in Golden Cross were up 9.3% today to 5.9c.