Intermin Resources Limited (ASX:IRC) has revealed its feasibility study findings for the Goongarrie Lady gold project in Western Australia, indicating a technically strong and financially viable project.
Importantly, the project is expected to generate $5.7 million in free cash flow in seven months at A$1,700 per ounce gold price.
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Intermin has envisaged an open pit mine design producing 135,000 tonnes at a fully diluted grade of 2.94 g/t gold for 12,700 ounces over the 7-month mine life.
Third party milling at 94% metallurgical recovery is estimated to produce 11,938 ounces recovered.
The project is expected to have low up-front capital costs of $0.73 million with attractive C1 costs of A$1,131 per ounce and all-in sustaining costs of A$1,164 per ounce.
Summary of feasibility study key outcomes
Intermin managing director Jon Price said: “The Goongarrie Lady Feasibility Study has delivered robust economic results with strong projected cash margins and reduced geological risk.
“As with the successful Teal gold mine, the company has taken a conservative approach to both resource estimation and development studies with the infill drilling increasing geological confidence and mine optimisation studies adopting conservative cut off grades to ensure acceptable cash margins.”
READ: Intermin Resources’ reconciliation of Teal gold production exceeds estimates
The feasibility study has confirmed Goongarrie Lady as Intermin’s next mining project in the production pipeline after the Teal gold mine to advance its aggressive, self-funded Goldfields exploration strategy.
Intermin’s next steps will include completion of statutory approvals in the September and December quarters, review of development options and negotiation with mining and haulage contractors and third-party toll milling operators.