The HEG gold projects in Australia are in the historically gold-rich region of Hill End – Hargraves in central New South Wales and have existing gold resources totalling 572,000 ounces.
• The three main HEG gold projects of Hargraves, Red Hill and Reward are at various stages of pre-development and permitting.
• The Hargraves project (100% owned) has a Pre-Feasibility Study completed in 2014 for a 100,000oz open pit and low impact processing project.
• Initial production of ~100,000 ounces over four years at
• Production rate 300,000 tonnes per year at 2.5g/t from two initial open pits
• 11:1 waste to ore stripping ratio at a pit design gold price of A$1,450/oz
• Gold recovery of 95%
• Pre-development cost of A$2m and project capital of A$13m
• Net profit of ~A$40m after full cost recovery / royalty payments at A$1,600/oz
• Potential for Hargraves development extensions at same production rate
• Potential development of Red Hill deposit may add significant net profit
• The Red Hill project (minimum 85%) is in preparation for a PFS on an open pit project with an onsite processing plant or as a source of ore for an offsite plant.
• The Reward Gold Mine (minimum 85%) requires drilling of the near-surface Frenchmans wide zone and modification of the mining permits.