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Egan Street Resources Ltd.
Summary
| Project: | Rothsay | |
|---|---|---|
| Deposit: | Rothsay | |
| Location: | Australia | |
| Commodities: | Gold | |
| Date: | 7/19/2018 | |
| Report Code: | JORC | |
| Report Type: | Feasibility Study | |
| Project Stage: | Pursuing Environmental Approval | |
| Report details: | 19-7-2018: Egan Street Resources Ltd. announces a Feasibility Study report for its Rothsay deposit at the Rothsay project. Feasibility Study results incl. pre-tax NPV of A $80.4M (5%), IRR of 57%, 6.5yr LOM at the project. Egan Street Resources Limited (A | |
| Resources: | (Reserve, Prob.): 1.400Mt @ 4.4g/t Au for 200Koz contained | |
| CP/QP: | [Resources]: Mark Zammit (Cube Consulting Pty Ltd.) | |
| ABSTRACT: | Egan Street Resources Limited (ASX: EGA) (EganStreet) is pleased to advise that it has completed the Definitive Feasibility Study (DFS) on its 100%-owned Rothsay Gold Project (Project), located 300 km north-east of Perth in WA’s Midwest region, with the results confirming the potential for a new low-cost, highmargin Australian gold project capable of delivering strong financial returns for shareholders. The DFS concludes that the Rothsay Gold Project is financially and technically viable based on its previously announced redevelopment strategy targeting unmined fresh material which can be accessed via an existing decline. Rothsay has a rich mining history dating back to the discovery of gold in 1894 and including several phases of mining, most recently by Metana Minerals in the early 1990’s. The DFS builds on a Pre-Feasibility Study (PFS) completed in May 2017, delivering a 25% increase in projected gold production to 250,000oz over an initial 6.5-year mine life, with increased average annual production of 53,000ozpa over the first four years. Together with a 22% increase in undiscounted pre-tax project cash-flow to $100 million, the DFS demonstrates that the Rothsay Project has the potential to generate strong cash-flows underpinned by high-grade, high-margin gold production. The DFS is based on processing 1.2Mt at an average grade of 6.94 g/t Au for approximately 250,000oz of gold production (up from 936,000t at 7.0g/t Au for 200,000oz in the May 2017 PFS). Forecast life of mine (LOM) cash costs C1 are A$941/oz and all-in sustaining costs (AISC) are A$1,083/oz. The proposed 6.5-year LOM production target contains material from both the Indicated and Inferred Resource categories. The majority of the production target (73% of ounces) is sourced from Indicated Resources with the remaining (27% of ounces) drawn from Inferred Resources. Based on these parameters, the Rothsay Gold Project delivers a Net Present Value using a 5% discount rate of $80.4 million and has an estimated capital payback period of less than 1.5 years. A gold price of US$1,275/oz and an exchange rate (USD: AUD) of 75 cents (A$1,700/oz gold price) has been assumed for the DFS. | |
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