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A scoping study shows a strong case for the development of an open-cut gold mine at Mount Mackenzie in Central Queensland, Resources and Energy Group says.

The company was granted a mineral development licence last month for the entire Mount Mackenzie mineral resource and all land required for the project’s development.

Resources and Energy Group said today the scoping study identified a 300,000-tonnes-per-annum open-cut development with on-site gold plant as the best case to progress.

The project, about 150km north-west of Rockhampton, would cost about $13 million to bring online.

“The outcomes of the scoping study based on the recently optimised mineral resource for the Mount Mackenzie gold project indicate the potential for development of a low-cost and profitable project,” chief executive officer David Frances said.

“The study concludes that a mine lief of about four years with production of 45,000 oz gold would provide an attractive payback period of approximately 15 months based on an initial capital cost of approximately $13 million.

“The study has also identified a potential mining and process route which would enable recovery of a greater proportion of the primary mineral resources than presently contemplated.”

Mr Frances said the feasibility study for Mount Mackenzie and exploration potential in the immediate vicinity were company priorities.

Study highlights Mount Mackenzie gold mine potential