viewBeacon Minerals Ltd

Beacon Minerals begins mining at Jaurdi Gold Project, obtains plant construction approval

The company is fully funded through to production.

Jaurdi project site in August 2018

Beacon Minerals Ltd (ASX:BCN) has started mining at its Jaurdi Gold Project near Kalgoorlie, removing 103,000 bank cubic metres of top soil and waste from panel 1 in August.

The last remaining works approval to construct and commission the 500,000 tonne per annum gold processing facility has also been granted by the West Australian Department of Water and Environmental Regulation.

Beacon has constructed the power station and fuel farm pads, and cleared and sheeted the processing facility area, in advance of receiving approval and starting plant construction.

Plant construction imminent

A number of pre-production activities have been completed, including:

  • Identification and development of a process water borefield;

  • Mining fleet mobilisation;

  • Construction of offices, workshops and camp; and

  • Relocation of Lawlers plant items purchased in February.

Ongoing activities include: clearing, grubbing and stockpiling of top-soil and wood mulch; construction of the process plant; preparation of the ROM pad; and construction of the tailings line and decant water line to the Black Cat open pit.

Debenture issue

Earlier this month Beacon announced it had received commitments to raise $18 million through a debenture issue to professional and sophisticated investors.

The issue was heavily oversubscribed and Beacon directors Graham McGarry and Geoff Greenhill, and persons associated with them, subscribed for $4.6 million of the total.  

The raising was undertaken to fund Jaurdi as it moves into production.

Low-cost mining operation

Beacon completed a pre-feasibility study (PFS) for Jaurdi last month, confirming an initial mine life of 5 years and processing of around 2.5 million tonnes at 1.9 g/t gold t.o deliver 126,000 ounces.

The modelling envisioned development of one shallow, low-strip ratio open pit which would entail a low mining cost and an even lower pre-stripping cost.

All-in sustaining cost for the project amounts to $870 per ounce.

Beacon managing director Graham McGarry said of the PFS: “[It] has concluded that the Jaurdi Gold Project will enjoy low pre-production and operating costs which underpin a low-risk, high-margin gold operation with a short payback period and strong free cash flow.

“Beacon will work diligently on producing gold in the first half of 2019 from this new and exciting gold environment and we will continue to explore the several “high-priority” exploration targets we have identified from previous high-level exploration activities.”

Quick facts: Beacon Minerals Ltd

Price: 0.037 AUD

Market: ASX
Market Cap: $106.07 m

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