Bardoc Gold (ASX: BDC)
Reported the results of the successful Cash-flow Optimisation Study conducted on its flagship 100%-owned 3.07 M oz Bardoc Gold Project near Kalgoorlie in Western Australia.
The strategy to bring forward mining of cornerstone Aphrodite deposit will lift production by 80,000oz in the first five years and see Bardoc become a 150,000 oz pa producer by year-three.
|Bardoc Gold||ASX : BDC|
|Market cap||A$115 m @ 6.6 c|
|Location||Kalgoorlie, Western Australia|
OPTIMISATION STUDY VALIDATES PLAN TO ACCELERATE PRODUCTION GROWTH AND INCREASE CASH-FLOW
Bardoc Gold (ASX: BDC) is pleased to report the results of the successful Cash-flow Optimisation Study conducted on its flagship 100%-owned 3.07 M oz Bardoc Gold Project near Kalgoorlie in Western Australia.
Strategy to bring forward mining of cornerstone Aphrodite deposit will lift production by 80,000oz in the first five years and see Bardoc become a 150,000ozpa producer by year-three.
• Bardoc completes successful Cashflow Optimisation Study.
• The Study shows that an additional 80,000oz (14%) will be produced in the first five years of operations by expediting development of the Aphrodite deposit and relocating the processing plant there.
• The Project’s key forecast metrics are:
− Life-of-mine (LOM) pre-tax cash-flow of A$795M (at a A$2,450/oz gold price);
− Pre-tax NPV (6%) of A$524M and 42.8% IRR;
− Pre-production capital of A$232M (including A$22.7M of processing plant contingency for higher material and labour costs);
− LOM All-In Sustaining Costs (AISC) of A$1,301/oz.
• Operationally simpler mine plan with earlier establishment of the flotation circuit to de-risk the project.
• Final Investment Decision scheduled for December 2021.
Bardoc Gold Optimisation Study
As foreshadowed on 3 August 2021, Bardoc has undertaken a Cashflow Optimisation Study which reschedules the mine plan, bringing forward production from its cornerstone Aphrodite deposit.
The key benefits of the proposal are:
✓ Increases gold production in the first five years;
✓ Allows mining of higher grades at Aphrodite at an early stage of the production profile;
✓ Provides improved cash-flows to deliver earlier repayment of debt;
✓ Allows for continuing exploration at Zoroastrian with a view to increasing Resources ahead of mining;
✓ Allows for the highly prospective new underground lodes (Omega, Sigma and Gamma Lodes) at Aphrodite to be considered for inclusion earlier in the project’s life; and
✓ Potentially reduces risk to investors and financiers.
Bardoc Gold management comments
“The new strategy would deliver increased production, cash-flow and financial returns.
“Bringing forward development of the cornerstone Aphrodite deposit will see Bardoc reach the 150,000 oz pa gold production milestone by year three.
“With further potential extensions of the Zoroastrian and Aphrodite undergrounds, we can ensure this profile continues well into the future.
“The plan also de-risks the project by bringing forward the capital expenditure for the flotation circuit and increasing gold production by 80,000oz in the first five years.
“The increased cash-flows achieved in the first five years of operations will improve the debt repayment profile and ensures Bardoc can return value to shareholders earlier.”
Bardoc Gold Chief Executive Officer, Mr Robert Ryan
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