Echo Resources Ltd (ASX:EAR) continues to reap the benefits of a near surface gold resource north of Kalgoorlie that could be mined and trucked to a plant near to its Julius Gold Project with mininal cash outlay and maximum cash flows.
A scoping study projected a positive cash flow of $47 million by mining a 68,740 ounce resource for 2 years with upfront capital expenditure of under $3 million.
Providing confidence, 95% of the in-pit gold resources at 100% owned Julius, 70 kilometres east of Wiluna are in the JORC Indicated category. All in sustaining costs are estimated at $921 an ounce.
Three processing plants are located within 100 kilometres; including Wiluna to the east, Jundee to the north and Bronzewing to the south of Julius where ore could be trucked from - although there are no agreements in place at present.
A Feasibility Study is already underway that could increase the resource by testing at depth as well as evaluating the potential for a regional resource base around Julius.
Hence, the Julius gold mineralisation is open along strike and at depth.
The company is debt free and has a cash balance of $3.2 million after raising $3.23 million from an oversubscribed share placement last month to institutional and sophisticated investors.
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