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Primary Gold assessment shows upside of Tom’s Gully gold project

Last updated: 15:30 05 Apr 2013 AEDT, First published: 14:30 05 Apr 2013 AEDT

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Primary Gold (ASX: PGO), formerly Hydrotech International, has completed an early assessment of its Toms Gully Project in the Northern Territory which shows the potential for Resource, mine life and recovery increases.

These results will be fed into the current Feasibility Study underway and due for completion in the current quarter.

The Tom’s Gully underground mine previously produced 115,000 ounces of gold at 8.2 grams per tonne (g/t) and currently hosts a JORC Resource of 140,000 ounces of gold at 8.4g/t.

The Feasibility Study is following up on positive results of the Scoping Study completed during 2012 that demonstrated recommencing production from the mine and processing plant would be viable and total production costs would be below A$1,000 per ounce were possible.

The Scoping Study included a 250,000 tonne per annum processing plant, which positively impacts capital costs, payback period and ramp-up time to full production.

With a mill throughput of 250,000 tonnes per annum, Tom’s Gully would have a mine life of 3.5 years producing 40,000 ounces of gold per annum at recoveries of 85%.

Capital expenditure would be A$15 million.

The full Feasibility Study will confirm the production parameters and costs, and further investigate upside potential in areas such as mine life and unit costs.

It will include an updated Resource, which is due this month, and Ore Reserve.

Primary Gold has appointed the final technical consultants required to complete major resource and engineering works for the Feasibility Study.

Tom’s Gully forms part of the Mt Bundy Gold Project, which also includes the Rustlers Roost open pit mines.

The Mt Bundy assets have a combined Inferred and Indicated JORC Resource of 1.02 million ounces of gold.


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