kalgoolie miner front page

$1bn gold mine

14th February 2011, 9:30 WST




The Phillips River Project between Hopetoun and Ravensthorpe is set to become one of the most significant mining projects in southern Western Australia, according to Tectonic managing director Jason Stirbinskis.

His comments followed the release of a definitive feasibility study on Tectonic?s 100 per cent-owned Phillips River Project demonstrating a viable project, generating estimated revenue of more than $1 billion; and $224 million (pretax) in net cash over a 10-year mine life.

?It is important to acknowledge the DFS only considers our Trilogy and Kundip operations and therefore provides a potentially robust strategic platform for Tectonic and our other deposits in the vicinity, ? Mr Stirbinskis said.

?The processing facility allows us to treat a very wide range of ores producing gold dore, copper concentrates and bulk sulphide concentrates.

?This flexibility of feed and output is the key as it is highly likely that any subsequent gold, copper or base metal discoveries within our highly prospective and considerable holdings in the region will be compatible with our plant.?

Mr Stirbinskis said any future discoveries were likely to further enhance the project?s economic viability without substantial additional plant expenditure. ?We believe the Philips River Project will redefine Tectonic as an important gold and copper producer and will be one of the most significant projects in the southern region of WA, ? he said.

?We are very happy with the outcome of the study.

?As a stand-alone project it is pretty robustm but the exciting thing for us is that we have just got so many other opportunities down there and this is just the start.?

Mr Stirbinskis said the company would be involved in a community engagement process and talking to potential off-take customers and banks for debt funding.

?They are the big three steps from here and a timeline for production will be determined by how those conversations go.?

The capital cost for the project is $133 million. He said the Trilogy mine would be developed in the initial phase of the project, using conventional open pit mining methods.

?A small underground mine will follow at the completion of the open pit and will extract the remaining value in the Trilogy resource, ? he said.

TIM SLATER