Join our daily newsletter At The Bell to receive exclusive market insights
- Focus Minerals (PFS) has released its stage one pre-feasibility study (PFS) and probable ore reserves for the Laverton Gold Project in WA
- Despite only using 21 per cent of the project’s mineral resource base, the initial PFS delivered positive economics including free cashflow of $222 million with a pre-tax net present value of $132 million
- The PFS also outlined 513,000 ounces of gold production at an average all-in sustaining cost of $1497 per ounce over a 9.25-year life of mine
- Focus will now progress the second phase of the PFS which will include more deposits
- Company shares are up 3.17 per cent and are trading at 32.5 cents
Focus Minerals (FML) has announced the results of its stage one open-pit pre-feasibility study (PFS) for the Laverton Gold Project in WA.
The first phase of the PFS used the refurbished 1.5-million-tonnes-per-annum Barnicoat Mill and included five out of 20 deposits within the Laverton Gold Project.
All up, the project hosts a measured, indicated and inferred mineral resource of 61.3 million tonnes at 1.85g/t gold for 3.64 million ounces.
However, the stage one PFS indicated mineral resource used to inform the stage one scenario is 16.4 million tonnes at 1.47g/t gold for 770,000 ounces which represents just 21 per cent of Laverton’s total resource.
Despite only using 21 per cent of the project’s mineral resource base, the initial PFS delivered positive economics and probable ore reserves of 12.6 million tonnes at 1.34g/t gold for 546,000 ounces.
The PFS also outlined a pre-tax net present value of $132 million at an internal rate of return of 17.2 per cent with a payback period of 6.5 years.
Over a 9.25-year life-of-mine, the PFS outlines 513,000 ounces of gold production at an average all-in sustaining cost of $1497 per ounce and pre-tax free cashflow of $222 million.
“The progressive PFS result is a huge step forward in optimising future production in Laverton. It has also demonstrated the need to look at increasing the mining and milling capacity to reduce operating costs and increase profitability,” CEO Zhaoya Wang said.
“Our team at Focus will now draw on the results of the first-phase PFS to optimise the scale and economics of the Laverton Gold Project to deliver a long-life and low-cost operation for the benefit of all shareholders,” he added.
Focus will now progress the second phase of the PFS, which will include more deposits and examine the benefits of pursuing a larger mining and processing operation.
Company shares are up 3.17 per cent and are trading at 32.5 cents at 12:02 pm AEDT.
