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Beacon Minerals set to generate cashflow from gold mining at Halley's East in WA

Last updated: 13:20 30 Oct 2013 AEDT, First published: 12:20 30 Oct 2013 AEDT

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Beacon Minerals (ASX:BCN) is gearing up to accelerate gold mining operations at Halley's East in Western Australia, which could generate significant cashflow based on a $1,350 per ounce gold price.

This is subject to shareholder approval and completion of the proposed $4 million debenture issue.

A pre‐feasibility level open pit mine design study for the Halleys East project, compiled by Minecomp, resulted in a probable mining reserve of 58,500 tonnes at 10.6 grams per tonne gold containing 20,000 gold ounces.

The study indicates recovery of 18,430 ounces of gold at a cash operating cost per ounce of $685.

Beacon will pay a royalty to Duketon Consolidated of $36 per ounce recovered for a total all in operating cost of $721 per ounce, and an advance of $250,000, representing the first 6,944 ounces, has been paid.

The Halleys East campaign is expected to be completed within 18 months of commencement; all relevant Western Australian State government approvals to allow mine development at the site are in place.

The mine camp has been established and preliminary work has commenced on topsoil and overburden removal, and a trial grade control drilling program has been completed.

Ore mined at Halleys East will be trucked through Menzies to FMR Investments Greenfields mill in Coolgardie, with Beacon to pay FMR a fixed toll milling fee per tonne of ore processed.


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