Kalgoorlie-based MacPhersons Resources says its Nimbus-Boorara project near Kalgoorlie will have lower capital and operating costs than previously estimated, according to early findings in the feasibility study on the project.
“The study, which is due to be completed in the September quarter, has shown that lower costs not only have the potential to boost margins, but could also result in the cut-off grades being reduced,” MacPhersons said in a statement.
“This would increase the overall inventory and also help underpin the conversion of further resources to reserves.”
MacPhersons managing director Morrie Goodz said the results of the study showed an already robust project was becoming increasingly attractive on almost every front.
“These preliminary findings provide strong evidence that we will drive down costs further, we will upgrade more of our existing mineralisation in the resource and reserve categories and we will add to the overall inventory through the identification of new zones,” he said.
“In the process, we will strengthen our margins and grow our mine life.”
MacPhersons share price closed up 12.5 per cent to 18 cents per share.
