Auroch Minerals has provided an update on its near term route to production for the development of its non-refractory resources at the Fair Bride, Dot’s Luck, Guy Fawkes and Boa Esperança deposits.
As part of Stage 1, the Mozambique-focused gold explorer expects a centralised standalone 30 Ktpm non-refractory gold plant to provide early cash flow. “A key objective of the Stage 1 development strategy has been to ensure a robust IRR, a positive NPV and an economically sustainable standalone project, while critically creating a pathway to unlock the value of the total resource of 2 820 100 Au through Stages 2 and 3 in the future,” the company said in a statement.
Stage 1 is the key to unlocking the larger Stage 2 expansion as it exposes the deeper refractory ores found at Fair Bride below c60m. The Stage 2 DFS will consist of a 120Ktpm open pit and underground mining operation producing +90Kozs of Au pa. Stage 1 is designed to be expanded to 60 Ktpm (Stage 3) based on the outcome of further exploration drilling within our current Mining Concession and consolidated areas.
“Pulling together all of the technical work over the past 8 months has produced a very robust project development strategy that both minimises capital and provides maximum upside flexibility to exploit the non-refractory resources as well as unlocking the potentially lucrative deeper Fair Bride refractory resources in the first instance,” said Auroch MD Dean Cunningham.
“We are in a confirmed gold camp and our exploration program within our mining concession and adjacent properties should result in additional resources that could justify the expansion of the Stage 1 Project to 60Ktpm, from the 30Ktpm envisioned.
“Importantly, the development and construction of a Stage 1 centralised plant will give the company first mover advantage with the potential of further acquisitions or tolling arrangements through our processing facilities, giving Auroch greater flexibility in its operating process.”