Gold miner Ramelius Resources has identified a A$24-million capital cost savings for its Tampia gold project, in Western Australia, on the back of a simplified processing solution, but has pushed back the project’s start date from mid-2020 to the start of the 2021 calendar year.
The miner on Thursday said that up-front capital for the project is now expected to be around A$26.4-million, down from the initial estimate of A$50-million.
The feasibility study is based on the haulage of ore from Tampia to Ramelius’ existing Edna May operation, removing the flotation and fine-grind processing facilities previously envisioned.
The feasibility study estimated that the updated project would produce 210 000 oz of contained gold, up from the 197 000 oz previously estimated, with all-in sustaining costs coming in slightly higher at A$1 167/oz, compared with the A$1 119/oz, while cash flows have increased from A$82-million to A$139-million on the back of a higher gold price.
The project’s net present value has also increased from A$67-million to A$116-million, while the internal rate of return has increased from 66.1% to 155.7%.