Augur unveils positive scoping study results for Randu Kuning deposit
Tuesday, March 11 2014 - 05:12 AM WIB
ASX-listed Augur Resources Ltd unveiled Tuesday results from a scoping study on its Randu Kuning deposit located within the Wonogiri gold and copper project, in Central Java.
The scoping study result indicates potential for an economic deposit which is driven by a low stripping ratio, good metallurgical recoveries and excellent access to infrastructure giving the potential to generate substantial cash flow for relatively low capital outlay, the company said in a statement.
Augur said the project is anticipated to generate average net cash flows (after sustaining capital and royalties) of US$143 million based on a gold price of $1,250 per ounce and a copper price of $7,900 per ton. The C1 cash cost is estimated at $786 per ounce AuEq.
Highlights of the results of the study are as follows.
? Open cut mine delivering approximately 9 years of production at 1.74 to 2.0 Mtpa at 0.61 g/t Au and 0.16% Cu.
? Life of mine production of 283,000 ounces of gold and 236,000 tons of copper in concentrate, or 426,000 ounces gold equivalent (AuEq) at an average C1 cash cost of $786 per ounce AuEq using $1,250 per ounce gold and $7,900 per ton copper.
? Low preliminary capital expenditure estimate of $56 million (excluding contingency) to build a second hand plant and associated infrastructure costs due to excellent infrastructure and good access.
? Low strip ratio of 1.79: 1.00.
? Total current Randu Kuning resource estimate is 90.9 million tons at 0.35 g/t Au and 0.10% Cu.
? Randu Kuning deposit remains open at depth and to the east, south and west with significant opportunity to expand the current resource and test other regional targets.
Based on the results of the positive scoping study Augur said it plans to continue with its exploration activities on Wonogiri to define further economic mineralization at Randu Kuning and surrounding epithermal targets. ?Augur has commenced an active exploration program and will commence a drill program targeting extensions of the known mineralization and more regional areas,? the company said.
Editing by Reiner Simanjuntak