Mining of Teal Stage 2 will occur concurrently as Teal Stage 1 is completed and will extend mining operations at the site to the March 2018 quarter.
Key outcomes from the study indicate a financially viable cutback to the existing Teal Stage 1 eastern pit wall with the following results:
- Open pit mine design producing 31,000 tonnes at 3.1g/t gold for 3,100 ounces over a five month period;
- Third party milling at 94% for oxide and 80% for transitional metallurgical recovery produces 2,775 gold ounces;
- Capital development costs of $0.9 million;
- All in costs of $1069 an ounce; and
- At an Australian Dollar price of $1600 an ounce, the project generates $1.1 million in free cash flow for the company.
Jon Price, managing director, commented:
"The potential for further stages of the Teal gold mine have always been a part of our future mining project pipeline and the excellent performance of Teal Stage 1 to date has provided additional confidence to commence development of Stage 2.
"Stage 2 delivers incremental cash flow to the business and enables continuity of mining into the March Quarter 2018 when we expect to have the Goongarrie Lady and Teal Stage 3 Feasibility Studies complete for a development decision shortly thereafter."