Bullabulling Gold (LON:BGL) has concluded it makes economic sense to shift some of the infrastructure that divides its flagship project in Western Australia, but not all.
Relocating the power line and phone cable that separate the northern pits, Bonecrusher and Dicksons, from the rest of the project would boost resources by 5.4mln tonnes, which at a grade of 0.87 grams per tonne (g/t) equates to 150,000 gold ounces.
At the current spot gold price of US$1,278 an ounce, the additional production is estimated to increase potential net cash flow by approximately A$35mln.
Doing this work would increase forecast production over a projected mine life of approximately 13 years to 94.7mln tonnes at 0.84 g/t or 2.56mln ounces of contained gold. The previous mine plan in July envisaged production of 2.41mln ounces.
Bullabulling added that the optimisation work did not support a relocation of the Great Eastern Highway and the Goldfields Water Supply pipeline to extend the Dicksons pit south and the Phoenix pit north, though a minor realignment of the road and pipe line may be beneficial.