Dateline Resources is closing in on completion of its Colosseum gold feasibility study in California, boosted by strong metallurgical results. Its work appears perfectly timed as the gold price surged to an all-time high of US$4,690 (A$7012) an ounce this morning.
The all-important metallurgical leach work has confirmed the recovery assumptions of 91 to 92 per cent at a 106-micron grind size used in the scoping study 9 months ago and has added confidence to a conventional carbon-in-leach processing route.
New geotechnical studies have also identified a more efficient open pit design, with higher initial capital costs more than offset by today’s loftier gold prices compared to those used in the original scoping study.
Dateline says it was able to fast-track the company’s feasibility work and rein in costs by drawing on well-established assumptions from Colosseum’s original mining campaign prior to its 1993 closure, which have now been backed up with the latest findings.
The historical gold mine used a standard conventional wet tailings storage facility to contain the fine residual tailings. The planned redevelopment will use an environmentally friendly and cost-efficient dry-stack process. By using a filter press to mechanically remove moisture from the tailings, water can be recycled, reducing water loss in the production process.
Dateline Resources managing director Stephen Baghdadi said: “The Colosseum project is progressing to plan, with all key workstreams advancing in parallel. It’s business as usual; our focus remains firmly on delivering the final stages of the Bankable Feasibility Study and the construction tasks ahead. The alignment of current results with historic mine performance confirms that Colosseum is a well-understood system, positioning the project for a lower-risk and efficient redevelopment.”
The Colosseum BFS remains on track for completion in the first quarter of 2026. A previous scoping study released 9 months ago outlined a potentially solid mining operation forecasting production of 635,000 ounces over an initial eight-year mine life. The study also projected net revenues of US$827 million (A$1.245 billion), a net present value of US$550 (A$282 million) and an internal rate of return of 61 per cent.
At that time, the study used a gold price assumption of US$2900 (A$4340) per ounce. However, wind the clock forward and, with prices surging today to all -time highs of $US4690 ($A7012) for an ounce of the yellow metal, the economics of the project look set to be supercharged.
The project hosts 27.1 million tonnes grading 1.26g/t gold for 1.1 million ounces, with more than 67 per cent classified as measured and indicated.
Elsewhere and in a strategic move to add to its exploration portfolio, the company recently completed an all-scrip deal worth 8 million Dateline shares to buy the promising Argos strontium project, about one hundred kilometres from its Colosseum project
By taking on the project, Dateline has put its critical minerals diversification into overdrive. Argos is the largest known strontium deposit in America and the sole domestic deposit of scale. No strontium is currently produced in the US.
Strontium plays a vital role in electric vehicles and the growing space systems sector. Having the only notable US strontium deposit puts Dateline in an enviable position as it pushes to advance its project.
With Colosseum’s rapid development coming amid ballooning gold prices, a diversified Dateline appears to be well-positioned to deliver on its goal of transitioning from explorer to developer.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
