EganStreet Resources Limited (ASX:EGA) has received approval for the mining proposal and mine closure plan for its wholly-owned Rothsay Gold Project in Western Australia.
The approvals are for the project’s two mining leases and miscellaneous licence, covering the planned mining, processing, waste facilities and haul roads.
Remaining approvals currently under assessment include a native vegetation clearing permit as well as the works approval and licence application.
The company is advancing project finance discussions for Rothsay’s development and the approvals will be viewed favourably by potential financiers.
Rothsay hosts high-grade mineral resources of 454,000 ounces at an average grade of 9.2 g/t gold which includes indicated resources of 949,000 tonnes at 9.6 g/t and inferred of 590,000 tonnes at 8.6 g/t.
The company’s updated definitive feasibility study published February this year states a produdtion target of 2.3 million tonnes mined and 1.3 million tonnes processed at 7.2 g/t gold for 289,000 ounces of gold produced.
Longer-term growth will be based on a strategy of using cashflow from initial mining to target extensions of the main deposit and explore surrounding tenements.
These include an 18-kilometre strike length of highly prospective and unexplored stratigraphy.