Gold Tailings

The Project is located 720 km north-east of Perth, 260 km north north-east of the major mining town of Kalgoorlie, and about 18 km north-west of Laverton. It is serviced by sealed roads from Kalgoorlie via Leonora to Laverton.

Following the completion of the Pre-Feasibility Study in 2020, a Definitive Feasibility Study (DFS)
was commissioned to define the project to a +/-15% level of accuracy. The DFS was prepared with assistance from several well recognised and independent mining consultants and contractors
and incorporated the Lancefield Gold Tailings into the production base.

The findings from the DFS highlighted a robust project with the following key findings:

  • Windarra/Lancefield Gold Tailings could produce between 53.5-55.2koz gold, subject to the selected mining method, over a 45-month period, utilising low-cost, low-risk tailings mining methods and a conventional 1.5Mtpa modular designed processing facility.
  • Feasibility Study Base Case utilising dredging mining returned the following economic outcomes:
    • Net operating cashflow of $30.6 million, Net Present Value (NPV8) of $21.7 million and IRR of 50.6%, assuming a gold price of US$1,750/oz and exchange rate of A$1.00 = US$0.75.
    • Application of the Residual Value assessment improved net operating cashflow to $36.3 million, NPV8 to $25.7 million and IRR to 53.9%.
    • All in sustaining cost (AISC) for the Project was estimated to be A$1,393/oz.
  • Modest development capital cost of $25.8-$29.5 million, subject to the mining method selected with a payback of 27-28 months from start of construction.

Given the positive outcome of the DFS and our primary focus being on nickel production the Company has decided to seek a partner to assist with the development of the project. The ideal partner will be one with a demonstrated engineering design and construction expertise and the capability to manage the project during the operations phase. The Company is finalising a transaction with a preferred partner (as at August 2022).

Windarra Gold Tailings Project
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