Bardoc boosts reserve, unveils DFS

Bardoc Gold has released its much anticipated definitive feasibility study for its namesake gold project in the heart of Western Australia’s Eastern Goldfields, underpinned by a 28% larger reserve estimate (reports MiningNews).
1st April 2021
Resources Rising Stars

Bardoc Gold has released its much anticipated definitive feasibility study for its namesake gold project in the heart of Western Australia’s Eastern Goldfields, underpinned by a 28% larger reserve estimate (reports MiningNews).

Bardoc, which has more than 3.07 million ounces in resources within its 250sq.km of consolidated leases, based today's DFS on a 1Moz reserve contained within five of 17 known deposits: Zoroastrian, Excelsior, Aphrodite, Bulletin and Mayday.

The ore will be sourced from a variety of open pit and underground mines, located up to 50km north of Kalgoorlie, along the Bardoc Tectonic Zone.

The company, which is about to kick off optimisation studies to improve the DFS, is targeting a final investment decision in the September quarter, and first gold in late 2022.

According to the DFS, the project should generate an average 136,000ozpa at all-in sustaining costs of A$1188/oz over a decade, with life-of-mine pre-tax cashflows of $740 million based on a $2250/oz gold price.

The pre-tax net present value is $479 million, with a 41% internal rate of return.

Cashflow reduces to $586 million, with an NPV of $365 million and IRR of 33% if the gold price drops to $2100/oz.

Bardoc estimates it will need $177 million in pre-production capital, with a payback of 32 months.

CEO Robert Ryan said discussions with debt providers were advanced, with Bardoc keen to accelerate development as quickly as possible.

He said the company was "on a clear trajectory to develop one of the few new gold projects of scale in Australia over the next two years".

Read more at https://www.miningnews.net/feasibility/news/1407322/bardoc-boosts-reserve-unveils-dfs

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