The PFS returned a forecast average production of 135,000 ounces per annum at an AISC of $1,220 per ounces over an initial 8-year mine life.
Using today's spot gold price of A$2,530 per ounce, an 8-year gold mining operation would be valued at A$600 million pre-tax.
“One of the best undeveloped gold projects”
Chief executive officer Robert Ryan said the results highlighted the opportunity to develop a substantial new mid-tier Australian gold project with outstanding economics and strong financial returns.
“The strong PFS outcomes demonstrate that the Bardoc Gold Project is one of the best undeveloped gold projects in the Eastern Goldfields, with the potential to deliver an average of 135,000 ounces per annum at an AISC of $1,200/ounces over a 7 year production period peaking at 170,000 ounces in year 5.
“Our project development strategy is underpinned by the construction of an on-site 1.8 million tonne per annum capacity CIL plant incorporating a flotation circuit capable of producing a gold concentrate for sale to international markets.”
Ryan continued: “The focus of our ongoing drilling will be to in-fill and upgrade a portion of the inferred resources to the indicated category, so they become available for conversion to ore reserves, also to grow our overall mineral resource base and to commence mining evaluations of the key satellite deposits.
“Given the already strong economics of the PFS, our focus will now be to optimise the project in terms of reserves, mining inventory, production levels, operating costs and financial returns in order to deliver the best possible return to shareholders.”
Bardoc Gold has reported global mineral resources for the project of 49.9 million tonnes at 1.9 g/t gold for 3.02 million ounces of contained gold.
The mineral resource estimate used for the PFS was reported in September 2019 and assumed mining from only four of the 17 resource areas, allowing for future growth in the mine plan during possible future mining operations.
Over the last 12 months, the company has completed several transactions that have leveraged their geological knowledge with benefits already coming to fruition at Mayday North.
With funds available for exploration and an appetite for discovery, Bardoc Gold is well placed to expand on the current resources to strengthen the mine plan as well as make new significant discoveries that will provide longer-term options for mining and gold production.