Phoenix Gold (PXG) says a feasibility study on its heap leach proposal found it would generate strong returns at current gold prices.
The study on the low-grade material from Phoenix's Castle Hill project and satellite pits in WA showed the heap leach strategy would generate total pre-tax net cashflow (excluding cap-ex) of A$70 million over seven years.
The heap leach option would give Phoenix a way to extract value from the substantial volume of low-grade ore that is produced in association with the higher-grade ore across its projects.
Phoenix said the study found the heap leach would produce 191,000oz overs seven years. It would take 12-15 months to develop the operation, which would have a total upfront cost of A$34.4 million and all-in sustaining cash costs of A$913/oz.
It said a development decision would be made "in coming months".
The study on the low-grade material from Phoenix's Castle Hill project and satellite pits in WA showed the heap leach strategy would generate total pre-tax net cashflow (excluding cap-ex) of A$70 million over seven years.
The heap leach option would give Phoenix a way to extract value from the substantial volume of low-grade ore that is produced in association with the higher-grade ore across its projects.
Phoenix said the study found the heap leach would produce 191,000oz overs seven years. It would take 12-15 months to develop the operation, which would have a total upfront cost of A$34.4 million and all-in sustaining cash costs of A$913/oz.
It said a development decision would be made "in coming months".