A DEFINITIVE feasibility study (DFS) has confirmed that Emerald Resources’ Okvau Gold Project in Cambodia is robust and compelling. The DFS is based on a 2 million tonnes per annum operation and an ore reserve of 907,000 ounces.
|The camp at Emerald Resources’ Okvau Gold Project in eastern Cambodia’s Mondulkiri province.|
The company’s Board has approved the project to proceed to construction subject to financing arrangement and permitting, including a Mineral Investment Agreement with the Royal Government of Cambodia to support an Industrial Mining Licence.
The DFS confirms Okvau’s robust nature with an initial operating Life-of-Mine (LOM) of more than seven years, annually producing approximately 106,000 ounces from a single open pit. Ore will be processed through a 2 million tonnes/annum plant utilising a single stage crushing circuit and SAG mill, sulphide flotation, regrind mill followed by conventional cyanide leaching.
The initial ore reserve is 14.3 million tonnes @ 2.0 g/t with average AISC of US$731/ounce. The updated resource estimate is 17.7 million tonnes for 1.14 million ounces with 1.01 million ounces as indicated and 130,000 as inferred. The LOM strip ratio is 5.8:1, and processing recovery is 84% for 762,000 recovered ounces.
Emerald managing director Morgan Hart said: “The Emerald team has delivered a maiden reserve of just under 1 million ounces along with a DFS demonstrating the exceptional economics of Okvau, all of which has been achieved within 12 months of Emerald becoming formally involved in the project.
“The results of the DFS, including a pre-tax NPV (5%) of approximately A$300 million with IRR of 48% pa, vindicates Emerald’s decision to acquire 100% ownership. Importantly, given the reserve grade and moderate strip ratio, the project has low AISC of US$731 per ounce over the LOM.
“This will be the first large-scale gold project to be developed in Cambodia and Emerald is confident this first mover status will result in a number of growth opportunities.”
Given completion of the DFS and with targeted development due to commence late in the fourth quarter, Emerald is focused on:
- Procuring project approvals and permitting;
- Securing project funding;
- Identifying additional cost-saving measures from the forecast capital and operating expenditure;
- Optimising open pit staging and scheduling; and
- Pursuing an active exploration program aimed at discovering nearby additional gold deposits that can deliver additional mill feed to the project.