Brisbane, Oct 29, 2008 AEST (ABN Newswire) - D'Aguilar Gold Limited (ASX:DGR) provide the Anduramba Molybdenum project update with the following highlights:
- Pre-feasibility review is complete and proposed financing and development schedule finalised for the Anduramba Project located 150km west of Brisbane, Qld, Australia.
- Pre-feasibility review indicates an 11 year, 2 to 3mtpa conventional molybdenum sulphide mine delivering a 2.5 year payback of A$86M Capital cost and an NPV of A$235M with an IRR of 48.5%.
- Definitive Feasibility Study (DFS) is scheduled to commence November 2008.
- Preliminary testwork has identified the potential to produce up to 1.33mtpa of industrial grade silica feldspar sand as a by‐product sold into SE Qld industrial developments.
- Metallurgical testwork is due to be completed by mid November 2008.
- Hydrogeology water supply study stage 1 has been completed. Stage 2 has commenced.
- Mining Lease application in preparation.
- Mineralogical studies and environmental tests have been completed.
Key Pre-feasibility Financials and revised pit optimisation show:
--------------------------------------------------Operating Cost A$14.70 / tonneCapital Cost A$86 MPayback 30 months (from 1st Cashflow)Mine Life 11 years (from 1st production)Average EBITDA A$60 M paNPV (pre tax/ post finance) A$235 MIRR (pre tax/ post finance 48.5%Cumulative Operating Surplus A$558 MAverage Annual Production:Molybdenum (Mo) 2.1 M lbsCopper (Cu) 0.67 M lbsSilver (Ag) 0.3 M ozSand products Up to 1.33 M tonne--------------------------------------------------
Total resources of 31.6 million tonnes averaging 0.059% Molybdenum Equivalent* (Mo Eq)
-------------------------------------------------------Category Tonnes Mo Oxide Sulphide Ag Cu Mo Eq (ppm) Mo Mo (ppm)(ppm)(ppm) (ppm) (ppm)--------------------------------------------------------Indicated 21,013,961 567 114 425 5.69 159 628Inferred 10,614,273 487 88 369 2.81 94 519Total 31,628,234 540 105 406 4.72 137 591-------------------------------------------------------
Parameters Used for Pit Optimisation:
-----------------------------------Resource: 31.6 million tonnes: Indicated 21 Mt, Inferred 10.6 Mt Cut-Off Grade: 0.03% Mo EqMilling Rate: 1.95 million tonnes per annum increasing to 3 million ton per annum in year 3Waste to Ore ratio: 0.83:1** Density of ore and waste = 2.52 tonnes per cubic metreRevenue Parameters:------------------------------------------------------- Mill Feed Mill Net smelter Prices Grade Recovery returns (ppm) (%) % of price) ($US)-------------------------------------------------------Mo as sulphides 406 ppm 85% 87.5% US$30.00/lbMo as oxides N/A 70% 87.5% US$30.00/lbSilver 4.72 ppm 65% 80% US$9.37/ozCopper 137 ppm 70% 80% US$1.69/lbUS$ to A$ exchange rate 0.65 Royalties: 2.7% of net Discount smelter returns rate 10%--------------------------------------------------------
Water Supply Study:
The study revealed that the Anduramba site is conducive to the collection of significant runoff during heavy rain falls and with ground water supply will provide in excess of the necessary water requirements for the project.
Mining Lease Application:
A Mining Lease Application along with ancillaries Plan of Operations (POO), Environmental Management Plan (EMP) and application for an Environmental Authority for the project development is in preparation and subject to financing is expected to be submitted in the next quarter (Q1/2009).
Mineralogy Studies:
Mineralogical studies have not identified any negative environmental issues arising from the mineral extraction and tailing disposal process.
It is anticipated that the average annual production of sand will be up to approximately 1.33 M tonnes of industrial quality sand suitable for various applications. Various markets are targeted with in South East Queensland.
Project Upsides:
The new assessment has used conservative strip ratios (based on an average pit slope of 45 degrees including haul roads). The completed pre‐feasibility study has assumed conservative mill operating costs pending the completion of metallurgical testing and process plant specification.
A program of oriented HQ diamond core drilling completed in January 2008 has been reviewed by Coffey Geotechnics and a formal report is pending. Preliminary findings indicate that the host rock is sufficiently competent to provide for increased slope stability. Once the report is complete another pit optimisation revaluation will be carried out, with the potential to further enhance project economics.
Significant potential to produce industrial grade silica feldspar sand from the tailings of the proposed operation has been identified. This may reduce the overall mining footprint and accordingly reduce development and operating costs and increase earnings.
At this stage no allowance has been made for the treatment of oxide ore however current testwork is underway and if a commercially viable recovery technique is achieved significant value will be added to the projects economics as a result of Mo Oxide recovery.
Contact
Mr Nicholas Mather
Managing Director
Tel: +61-7-3303-0680
Mob: +61-417-880-448
Mr Greg Runge
General Manager - DGR Group
Tel: +61-7-3303-0680
Mob: +61-418-546-739
Mr Vincent Mascolo
General Manager - Anduramba Molybdenum
Tel: +61-7-3303-0680
Mob: +61-418-285-412
| ||
|
