Carbine buoyed by project study

Investors have welcomed the results of a pre-feasibility study on Carbine Resources’ Mount Morgan gold and copper project, conducted by GR Engineering Services, which found it to be a potentially low-cost and viable operation.

GR Engineering’s pre-feasibility study on the Mt Morgan project, in Queensland, found considerable improved results on a scoping study of the project completed in November last year by Ausenco Services, with all-in sustaining costs estimated at $311 per ounce over a minimum eight-year mine life.

The study found a 29 per cent reduction in mine development capital costs to $63.3 million, and a 12 per cent reduction in operating costs to $29.2 per tonne.

GR Engineering estimated an additional $4.48 million contingency for the project, with capital and operating cost estimates at an accuracy of +/- 20 per cent.

It also found that capital costs could be further reduced if Carbine fully or partially used the Kundana CIP plant, which is currently packed up at Norton Gold Fields’ Paddington gold mine in Western Australia after a $3.5 million decommissioning and refurbishment program in 2011.

“The company is pleased with the continued positive developments at the Mt Morgan project,” executive director Patrick Walta said.

“The board and management are excited by the opportunity to potentially bring into production one of the lowest cost gold operations in Australia.”

The company estimates it will produce about 31,200oz of gold, 3,200t of copper sulphate and 211,000t of pyrite concentrate over the mine’s life, based on a combination of 70 per cent inferred and 30 per cent indicated mineral resources.

Carbine shares closed 6.2 per cent higher to 6.8 cents each.