- Following an extensive core drilling program in 2017, Mineral Resources and Ore Reserves for the Tomingley Gold Operations below the existing open pits have been re‐estimated at a cut‐off of 2.4g/t gold:
- Total Mineral Resources 1.45Mt grading 3.7g/t Au (175,000oz)
- Total Ore Reserves 0.73Mt grading 3.1g/t Au (74,000oz)
- An independent mining study has determined that via decline access from the Wyoming One and Caloma pits, the deposits can be viably mined using standard long hole stoping with rib pillars and long hole stoping using cemented rock fill.
- Mining and grade reconciliation to date in the pits provided support to including Inferred Resources in the planned underground mining for a mineral inventory of:
- Mineral inventory 1.24Mt grading 2.7g/t Au (108,000oz)
- The base case development would recover 99,000 ounces of gold over a 40 month development and mining period for revenue of A$159 million at a gold price of A$1,600 per ounce. Cash costs were estimated to be A$1,150 to A$1,250 per ounce. Cash outflow to recover first ore is estimated at A$16 million. The Company’s cash and bullion position at the end of the previous quarter was A$69.0 million.
- The company is seeking to continue to generate cash from its gold business by:
- Appointing a project manager to confirm the development economics and prepare a detailed execution plan for an investment decision by December 2018.
- Continuing extensive exploration in the immediate mine area to establish further resource potential including re‐evaluation of the Peak Hill Gold Mine.
- Evaluating investment opportunities that expand the gold business.