Resource and Investment (ASX:RNI) has finalised mine planning and has scheduled gold production at its Grosvenor plant in Western Australia to start in 2013.
The mining schedule has shown that all capital costs associated with the refurbishment and re-commissioning of the Grosvenor plant and the start of the mining operations from its resource inventory will be paid up in the initial stage itself.
The stage one mining schedule will result in a cash flow, after tax, capital and royalties, of $76.2 million from the initial two pits based on a gold price of $US1,700 per ounce.
The company will initially start processing ore from the Yarlarweelor pit with additional mill feed to be procured from the smaller Toms pit and other stockpiles.
The plant will produce about 202,700 ounces of gold over an initial period of 42 months, with annual production expected to peak at about 60,000 ounces in 2015-16.
Future activities at Grosvenor include mining at the Nathans, Callies North and Horseshoe pits.
The company refurbished the Grosvenor gold processing plant for $11.9 million, which also included the installation of Gekko inline leach reactor to improve gold recoveries.
The company has a JORC gold inventory of 1.2 million ounces at Grosvenor based on 16.6 million tonne deposit at 2.2 grams per tonne.
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