High prices spark fresh look at Mount Mackenzie gold
It said a revised sale price would increase free cash flow for the gold-silver project to $54.6 million, from a previous estimate of about $30.5 million.
The review follows scoping study results released in December that showed a strong case for the development of an open-cut gold mine at the site, about 150km north-west of Rockhampton, costing about $13 million to bring online.
Resources and Energy Group (REZ) said it had used a $2000/oz gold price in the previous evaluation and was now re-evaluating the projects’s mineral resource estimate under a higher price model.
Pit optimisation using a gold price of 2400/oz and a mining/-processing rate of 500,000 tonnes per annum would be carried out as part of the process, and a $2600/oz price for sales.
The work is expected to be completed over the next month and is anticipated to provide the basis for advancing the project to detailed feasibility phase.