The board of West Perth-based Adamus Resources has given the go-ahead for development of its $95 million Southern Ashanti gold project in Ghana, which will generate $124 million for the company in the first two years.
The green light follows the completion of an optimised feasibility study (OPS) with results showing "enhanced economics" from the previous feasibility study that was completed around two years ago.
The OPS is based on a throughput rate of 1.9 million tonnes per annum - up from the previous 1.3mtpa - which Adamus considered "conservative".
Capital costs are estimated to be between $80 million and $95 million for a 10-year operation that will produce 100,000 ounces of gold each year.
The project currently has a reserve of 1.07 million ounces of gold.
The average cash costs for the mine have been pegged at $US489 per ounce while the net operating project cash flow is estimated at $US343 million, based on an average gold price of $US900 per ounce.
The mine is expected to generate $US100 million ($A124 million) in the first two years of operation.
Adamus said it expects final ministerial approvals before the end of this financial year and plans to lock in financing by the end of the September quarter.
Production is estimated to start at around 18 months after financing is secured.
Shares in Adamus were up 1.5 cents to 40.5c at 12:53 AEST.
