Oriole Resources PLC (AIM:ORR) has unveiled an amended technical report for its Bibemi gold project in Cameroon, including an in-house preliminary economic assessment to support its exploitation licence application.
It outlines a seven-year open-pit mine producing an average of 10,000 ounces of gold per year. The base case uses a gold price of $3,200 per ounce and estimates an after-tax NPV of $12.8 million.
Martin Rosser, Oriole's chief executive, described it as an important milestone, as the company seeks to be granted an exploitation licence for the Bibemi Project.
"The preliminary economic assessment for the selected Bibemi gold project mine scenario, which formed part of the technical report, shows that, based on the work completed to date, the project has mine development potential," Rosser said.
He added: "The mine plan has focused on extracting the bulk of the gold contained in the Indicated Resource using an expandable modular skid-mounted treatment plant design which would offer future operational flexibility, and potential for treatment plant capital intensity economies of scale.
"This flexibility to expand potential production is supported by the fact that less than 20% of the Project's total contained gold resources are incorporated into the PEA."
Rosser highlighted "encouraging scope" for upgrading the existing resources and exploration targets for all prospects, which would add further upside to the project.
Results from further technical studies, including more detailed metallurgical test work, would determine more accurate PEA parameters, he added.