Echo releases Yandal study

Echo Resources has released a bankable feasibility study for its Yandal gold project in Western Australia, with the company forecasting a $39.3 million capital expenditure for the mine.

The study details a two-stage project based on open-pit mining and processing from two deposits to produce about 746,000 ounces over an 8.5-year life.

The study estimates a post-tax net present value of $135 million

Managing director Simon Coxhell welcomed the BFS.

“It was only two years ago that Echo posted a maiden resource,” Mr Coxhell said.

“Today we have over 800,000 ounces in ore reserves, along with a rapid route to monetise our mineral assets via the refurbishment of the Bronzewing processing plant.

“We have completed what we consider to be a detailed, comprehensive and robust study with major cost centres supported by detailed tender or quotes.

“We have been systematic in our approach and we are confident that this will bode well for Echo’s success in the future.”

The company said a formal project financing process had begun.

Shares in Echo were off 13.64 per cent at 19 cents each today.