KBRL to examine mine economics6th March 2008, 11:15 WST Gold...

KBRL to examine mine economics

6th March 2008, 11:15 WST



Gold explorer Kalgoorlie-Boulder Resources Ltd will stop drilling and study the economics of mining its deposits at Norseman.

The company has appointed Downer EDI Engineering, Element CMC and J Macintyre and Associates to conduct additional technical studies to incorporate into the Norseman Gold Project scoping study.

“This expanded scoping study will build on the previous exhaustive pre-feasibility studies carried out by (previous owners) Kinross gold in 2001, which confirmed that the Mt Henry and Selene ore bodies could be mined and milled in a stand-alone process plant economically,” KBRL said.

“Although the project did not meet the investment criteria of Kinross Gold at the then-prevailing gold price of A$550/oz, the gold price has since strengthened significantly.”

Previous studies, including plant design conducted by Downer EDI predecessor JR Engineering, will be incorporated into a final feasibility study, which will facilitate its completion by the end of 2008.

“The Norseman process plant design incorporates a carbon-in-leach plant that was designed specifically for the Mt Henry and Selene ore types but which also allows flexibility to process other ore types as well,” the company said.

“J Macintyre and Associates has been commissioned to re-evaluate previous work for Kinross Gold with the previous pre-feasibility studies, including the metallurgical test work and reports that formed the basis for the design work by JR Engineering.

“Element CMC has been commissioned to manage the scoping study process, having been involved with a number of major project studies, including process facilitation work and feasibility study for Iluka Resources Limited mineral sands plant upgrade.”

In the past 12 months, KBRL has increased the resource of Mt Henry and Selene by more than 40 per cent to 1.44 million ounces of gold, with a cut-off grade of one gram per tonne.

“These upgraded resources will form the basis for the scoping study financial model, which will incorporate current financial constraints and quantify the economic potential of the project,” the company said.

“The (scoping) study, which is expected to be complete by the end of this month, will lead to a formal feasibility study expected to be completed in the December quarter of 2008.

“Any further drilling at Mt Henry and Selene will be undertaken based on the completion of economic studies into the mining of these deposits.”

BLAKE WILSHAW