Bells Scoping Study 2020

Bells Scoping Study 2020

Overview

The Scoping Study has demonstrated potentially strong financial metrics for the Bells Project based on a proposed stand-alone open pit mine supplying a conventional crush, screen, agglomerate and heap leach processing operation. The Company considered the Project to be technically low risk given the very low strip ratio and historically high processing recoveries from the previous heap leach operation.

The headline metrics and outcomes for Bells are:

  • Based on a Mineral Resource of 420kozs.

  • Production rate of 3Mtpa for an 8.5-year operation.

  • Producing approximately 39kozs of gold per annum from heap leach.

  • Low operating costs of approximately US$10/ore tonne.

  • Pre-production capital costs of US$58 million.

  • All In Sustaining Costs (AISC) of US$902/oz.

  • At US$1,550/oz gold price:

    • IRR of approx 40% (after-tax).

    • NPV @ 5% of approx US$75 million (after-tax).

  • Payback of 1.9 years (after-tax) from start of development.

  • The Project is envisaged to be an owner-operator open pit mine with a very low LOM strip ratio of less than 0.5:1.

  • Gold to be recovered by heap leach processing with an estimated LOM recovery of 80%.

The Scoping Study was completed to an overall +/- 30% accuracy using the key parameters and assumptions set out in the tables below. The full Bells Scoping Study ASX release can be found here.

 

Compliance Statement

With reference to previously reported Exploration results and Mineral Resources, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Competent Persons Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on, and fairly reflects, information compiled by Mr Steven Olsen who is a Member of the Australasian Institute of Mining and Metallurgy and an employee of Rex Minerals. Mr Olsen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Olsen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to mining is based on, and fairly reflects, information compiled by Mr Charles McHugh who is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of Rex Minerals. The information in this report that relates to mining is based on, and fairly reflects, information compiled by Mr McHugh. Mr McHugh has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr McHugh consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to metallurgy is based on, and fairly reflects, information compiled by Mr John Burgess who is a Fellow of the Australasian Institute of Mining and Metallurgy and a consultant to Rex Minerals. Mr Burgess has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Burgess consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements

This announcement contains “forward-looking statements”. All statements other than those of historical facts included in this announcement are forward-looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, copper, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statement”.