Egan Street Resources Ltd (ASX:EGA) has obtained approval from the Department of Mines, Industry Regulation and Safety for the Native Vegetation Clearing Permit (NCVP) for its flagship Rothsay Gold Project about 300 kilometres northeast of Perth.
The NCVP approval is with respect to the mining leases covering the planned mining, processing and waste facilities.
With the receipt of the NVCP, the company is now focused on the final substantial approval and is engaged with the Department of Water and Environmental Regulation with respect to progressing the Works Approval and associated licence application.
Key project metrics
The company completed an update to its July 2018 definitive feasibility study (DFS) on the Rothsay Gold Project in February 2019, with the results demonstrating a substantial increase in the production target, free cash flow generation and net present value (NPV) of the project.
The updated DFS builds on the DFS released in July 2018, delivering a 16% increase in projected gold production to 289,000 ounces over an initial 7-year mine life, together with a 16% increase in undiscounted pre-tax project cash-flow to $116.1 million.
The update follows a modest infill and extensional exploration investment of $1.1 million, further demonstrates that the Rothsay project has the potential to generate strong cash flows underpinned by high-grade gold production.