Batavia scopes Gullewa Ben SharplesMonday, April 03, 2006BATAVIA...

Batavia scopes Gullewa

Ben Sharples
Monday, April 03, 2006

BATAVIA Mining is looking to complete a bankable feasibility study on its Gullewa copper-gold project in Western Australia by August and prove up 1 million gold equivalent ounces after handing down a positive scoping study.


The scoping study indicated the project could support a 250,000 tonne per annum operation over a 6.5 year mine life producing around 37,000oz and 2200t of copper per annum.

A $A15.3 million price tag has been slapped on the project, comprised of $13.8 million for the processing plant and infrastructure and $1.5 million for mine development.

Gold production cash costs, with copper credits, have been forecast at $450/oz, while the projected net cash flow before tax is estimated at $64 million, based on a gold price of $780/oz and a copper price of $3 per pound.

The project has a resource in the Deflector deposit of 2.65 million tonnes at 9.12 grams per tonne gold equivalent for 775,000oz. The deposit remains open at depth.

The process and infrastructure component of the scoping study was completed by Metplant Engineering and the mining study was completed by Snowden Engineering.

Last month Batavia raised $1 million through a share placement, and Patersons Securities agreed to underwrite the early exercise of $7.9 million options, which are due to expire in mid-June.

The funds are to be used to complete a bankable feasibility study and drill campaign aimed at increasing the resource to the 1Moz mark.

Shares in Batavia hit a 52-week low of 1.8c in May before gaining ground to hit a 52-week high of 9.4c last month. The stock climbed 0.9c (12%) during afternoon trade to 8.4c.