Report: Ore reserves increasing

The National Business

A FEASIBILITY study shows an increase in ore reserves in the Frieda River project in West Sepik, according to PanAust.
PanAust yesterday released an update on the feasibility study for the Frieda River copper-gold project carried out last year.
Data and technical analysis from last year’s geological, geotechnical and metallurgical field programme for Ekwai and Koki deposits had been incorporated into a feasibility study addendum.
It was not available at the time of the feasibility study completion in May 2016 and subsequent lodgment of special mining lease application for the project last year.
The main outcomes reported in the addendum included:

  • Conversion of approximately 120 million tonnes (mt) of mineral resource from inferred to indicated category in Ekwai and Koki deposits;
  • the global Horse-Ivaal-Trukai-Ekwai-Koki (HITEK) measured and indicated mineral resource increased from 1846 Mt at 0.44 per cent copper to 1860 Mt at 0.47 per cent copper equating to an 8 per cent increase in copper metal;
  • ore reserves increased by 13 per cent to 686 Mt at 0.5 per cent copper and 0.28g/t gold as a result of the conversion of inferred to indicated mineral resources at Ekwai and Koki and improvements to the open-pit design incorporating interim stage designs and water management structures;
  • project post-tax net present value increased by 38 per cent to US$1130 million (K70.87 million) and the project risk profile reduced through a reduction of inferred mineral resource in the mill feed and independent reviews confirming feasibility of the integrated storage facility; and,
  • The estimated development capital expenditure is unchanged from the feasibility study.