Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
My blog:
  • Millennium Minerals Updates Nullagine Gold Project Life-Of-Mine Plan 0 comments
    Mar 19, 2014 1:02 AM

    Millennium Minerals (ASX: MOY) has updated the life-of-mine plan for its Nullagine Gold Project in Western Australia's Pilbara region based on the Ore Reserve update earlier this month.

    Mining inventory included in the LOM now stands at 481,000 ounces of gold with mining expected to recover 426,000 ounces.

    The inventory includes the Ore Reserve of 465,000 contained ounces, treatment of medium grade stockpiles and some Inferred Resources likely to be mined.

    Mining and processing is forecast at 9.8 million tonnes averaging 1.52 grams per tonne gold to recover the 426,000 ounces, at an average metallurgical recovery of 89%.

    Mill output is expected to be higher at 1.6 million tonnes per year.

    LOM mine level cash flow is forecast at $171 million using a spot gold price of US$1350/Oz, an exchange rate of $US0.90:A$1.00 and average hedged gold price of A$1594/Oz (for 72,000 ounces).

    Project before tax, pre‐debt, NPV is estimated at $144 million while average LOM sustaining cash costs are about A$1,160/Oz.

    This translates to an average LOM gross operating margin of A$527/Oz.

    FY2014 production is estimated at approximately 76,000 ounces at a C1 cash cost of A$975/Oz and a sustaining cash cost of A$1140/Oz.

    Nullagine consists of five main deposit areas; Golden Eagle, All Nations, Barton, Golden Gate and Shearers. Smaller higher grade deposits surrounding the Golden Gate area; Crow, G‐Reef, Harrier, Falcon and Condor are also included in this study.

    The updated mining schedule also includes the Little Wonder, Otways deposits and the Camel Creek Joint Venture deposits.

    Millennium noted the new LOM plan offers greater flexibility due to the recent establishment of multiple ore sources and associated mining operations.

    From 2014 mining and process operations have available oxidised, transition and fresh ore from the Golden Eagle deposit, higher grade oxidised ore at Golden Gate and substantial medium grade stockpiles located at the process plant.

    Improved blending of these materials should allow more uniform head grades, gold recovery and mill throughput over the currently planned life of the Project.

    In addition, the remaining deposits included in the mining schedule yet to be developed will largely add oxidised and transition ore types to the mining and milling plan so the proportion of fresh ore included in the mill feed blend will progressively decrease from around 50% in 2014 ‐ 2015, to below 30% for the remaining LOM plan.

    The company added that the current mine life of six years is more than adequate as a reserve base to allow for the future development of additional Ore Reserves from the reported 1.9 million ounce Resource inventory.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.