Echo Resources Limited has completed the Yandal Gold Project Bankable Feasibility Study (BFS) and confirms the project’s robust forecast economics following a detailed study process.
The project is located approximately 83km northeast of Leinster in the heart of the Yandal gold belt in Western Australia. The BFS includes a two-stage project for Echo which could potentially run for approximately 8½ years. The Echo board has approved Stage 1, which is subject to obtaining financing and all required statutory approvals. The first stage of the project targets the highest gold grades and lowest mining strip ratios. At an A$1,600/oz gold price, Stage 1 of the project is forecast to deliver pre-tax net cash flow of A$184 million, whilst providing capital payback after approximately 12 months of production.
The BFS also incorporates the mining of ore from the Orelia and Julius gold deposits along with undertaking processing at the refurbished Bronzewing process plant. The plant is based upon an annual throughput of 1.8 million tonnes. Echo has estimated the total pre-production cost for the Yandal Gold Project to be around A$39.3 million (A$30.3m capital plus A$9m pre-production costs) with payback estimated after approximately 12 months of production.
“It is with great pleasure that I present, on behalf of the Echo Board and management, the Yandal Gold Project Bankable Feasibility Study. It was only two years ago that Echo posted a maiden resource. Today we have over 800,000 ounces in Ore Reserves, along with a rapid route to monetise our mineral assets via the refurbishment of the Bronzewing processing plant,” announced Echo’s Managing Director and CEO, Simon Coxhell.
“We have completed what we consider to be a detailed, comprehensive and robust study with major cost centres supported by detailed tender or quotes. We have been systematic in our approach and we are confident that this will bode well for Echo’s success in the future,” he said.
The Yandal Gold Project belt was first discovered in the 1980’s, and since then the mine has been home to a number of multi-million-ounce discoveries. Echo Resources has stated that the project is currently host to mineral resource estimates totalling approximately 1.7Moz of gold. Some pre-development site activities have already commenced.
More information on this project can be accessed here.