Western Gold Resources (ASX: WGR) has announced the range of outcomes of a scoping study for open-pit mining and third-party toll treatment of the Gold Duke Gold Project in the north-eastern goldfields of Western Australia.
Gold Duke scoping study assessed various options utilizing third-party processing plants operating under a toll treatment agreement with a range of outcomes were defined based on gold price, and processing cost including cost of trucking ore from the Gold Duke Project.
Importantly, further upside potential exists as this scoping study has only assessed the economics based on mining 51% of the current published 2.9Mt @ 2.07g/t for 234,000oz gold mineral resource of Gold Duke.
WGR managing director, Warren Thorne, commented, “The scoping study has demonstrated the attractive value and potential cash generation of the Gold Duke Project over a broad range of gold prices. Importantly there is significant further upside as the study only includes 51% of the published resource of the project.”
Further, the production target generates an estimated undiscounted accumulated cash surplus of A$38.10M (after payment of all working capital costs and pre-mining capital requirements), and total funding requirements (including working capital) of between approximately A$6M and A$7.2M were estimated based on a multi-pit design, providing a 12-month mine life.
The company will now focus on securing a toll milling agreement and appointing a mining contractor to conduct operations whilst also assessing potential non-dilutive JV interest.
To find out more, please visit www.westerngoldresources.com.au
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