Neometals is deftly refining its short-term gold ambitions for its Barrambie project after notching up a positive scoping study for a potential first-stage mining push at its Ironclad deposit near Sandstone in Western Australia.
The study points to a rapid pathway to production, with Neometals modelling a toll-milling operation that could produce between 10,000 and 11,000 ounces of gold by mining an estimated 200,000 to 220,000 tonnes grading at 1.8 grams per tonne gold.
Notably, about 82 per cent of the mineral resources underpinning the plan sit in the higher-confidence indicated category, with the balance in the lower inferred category.
Ironclad’s broader mineral resource estimate, updated earlier in the month, now stands at 285,000 tonnes at 1.6 grams per tonne (g/t) gold for 15,000 ounces, including a higher-grade sweetener of 180,000 tonnes at 2.1g/t for 12,000 ounces.
Neometals managing director Christopher Reed said: “We are encouraged by the results of the Scoping Study, which highlight the strong potential of the Ironclad gold project. The study supports a viable pathway forward, with further grade control and resource extension drilling expected to enhance project economics. I want to thank all of our stakeholders and shareholders for their continued support and look forward to sharing further updates as we progress the next phase of the development of Ironclad.”
Neometals says the improved confidence and definition of the higher-grade zones have led it to prioritise its Ironclad planning for near-term production.
Under the base-case concept, mineralised material would be trucked 255 kilometres by road to a third-party processing plant for toll treatment.
Neometals has been working with BMLV Ventures, which has already provided mining, transport and tolling cost inputs and already has a toll-milling arrangement in place with the processor.
The parties are in advanced talks on a mining services and joint venture (JV) agreement that would see BMLV fund and manage development, mining, haulage and processing, with profits split 50:50 after costs.
Metallurgy is expected to be conventional, with the scoping study assessing gold recovery scenarios in the realm of 85 per cent to 90 per cent.
At a gold price of AU$7000 per ounce and a 0.8g/t gold cut-off, the study outlines an indicative pre-tax, undiscounted operating cash flow of between A$19 and A$23 million on a 100 per cent basis, namely, before any 50:50 profit share.
Upfront capital is excluded from the analysis, with BMLV estimating about A$2 million of initial cash, which would be recoverable from project revenue.
The company has initially flagged an anticipated mining start in the March quarter of 2027, subject to key approvals including a Native Title agreement, the grant of a Mining Licence application and other usual regulatory tick-offs.
The company’s next steps include grade control drilling, geotechnical work, further metallurgical testing and hydrogeological studies, coupled with brownfields drilling aimed at extending the Ironclad resource for a possible stage-two open-pit.
For Neometals, the concept is shaping up as a handy near-term gold opportunity that could help build momentum at Barrambie while the company continues to roll out its broader critical materials strategy.
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By Doug Bright
