The Asia Miner

OCT-DEC 2015

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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38 | ASIA Miner | October-December 2015 Cambodia AFTER announcing an Aus$23 million fund- raising package Geopacifc Resources has stepped up exploration at the Kou Sa Cop- per-Gold Project in Phreah Vihear province. The company has added a third drill rig to extend its current campaign. The RC rig has joined two diamond drill rigs that are onsite. It is initially being used to defne the resource potential of the Pros- pect 128 area and will then be used for infll drilling at Prospect 150 and Prospect 160. The ASX-listed company has also been involved in successful discussions with the Cambodian Electricity Commission (CEC) regarding the supply of power to the Kou Sa project. The CEC has confrmed that Geopacifc will have access to national grid power via a new power line, which is under construction and scheduled for completion by the end of the year. The line will run to a substation at the local village of Chheb that is 5km from the Kou Sa project in a recently completed bitumen highway. It will initially supply 33KV before being upgraded to 115KV next year. The CEC has provided very competitive indicative pricing for the hydro-electric gen- erated power. Building a 35KV line to sup- ply power from the substation to the site is indicated at a cost-effective US$125,000- 150,000 over the distance of 5km. Geopacifc says direct access to the na- tional grid will provide signifcant operational cost reductions to production because the indicated costs are considerably lower than the cost of diesel-generated power. The company's managing director Ron Heeks says that the ongoing support from Cambodian authorities in assisting Geopa- cifc to develop the Kou Sa project is reas- suring. "Access to the national power grid will beneft the community and the project." Discussions during the June quarter re- sulted in Geopacifc securing a funding pack- age valued at $23 million through a placement and fully underwritten rights issue. Ron Heeks says the company acknowledges the support and contribution of shareholders, particular- ly two specialist resource funds, Resource Capital Fund VI and Tembo Capital Mining Fund, which will enable Geopacifc to target a maiden resource. The funds enable the company to fol- low-up exploration carried out in the June quarter. Signifcant results from drilling are 4.6 metres from 20.5 metres @ 6.43% copper equivalent, including 3.3 metres from 21.8 metres @ 8.79%; 14.4 metres from 31.1 metres @ 2.59%, including 5.0 metres from 40.5 metres @ 5.31%; and 36 metres from 8 metres @ 11.11%, including 12 metres from 16 metres @ 34.22%. A RECENTLY completed pre-feasibility study (PFS) has demon- strated excellent economics for Renaissance Minerals' Okvau Gold Project in Mondulkiri province and confrms it as a low-cost opera- tion with robust cash fow, particularly in early years. The PFS out- lines an initial Life of Mine (LOM) of eight years, annually producing on average 91,500 ounces of gold. It is based on a 1.5 million tonnes per annum operation from a sin- gle open pit with mining in three stages using conventional mining methods and processing comprising fotation and cyanide leaching to produce gold dore. The PFS was prepared using a resource estimate of 15.8 million tonnes @ 2.22 grams/tonne gold for 1.13 million ounces. There are 73% of total resources within the pit design with 92% of in-pit re- sources in the indicated category. The revised resource model was based on a comprehensive understanding of the structural controls of Okvau deposit and additional drilling data. It sets out a defned and low-cost pathway to preparation of a defnitive feasibility study and development decision with minimal additional drilling required. There is also signifcant growth potential with a rigorous exploration target review and prospect generation program under way. A simple mine design provides scope for scheduling optimization and mining cost reduction. The pit has been designed and sched- uled in three distinct stages to allow for reduced waste stripping in the initial years and operational fexibility. Stages 1 and 2 provide 70% of the LOM mill feed, equivalent to the initial fve years of oper- ation, at a strip ratio of 4.7:1. As a result, production costs are highly competitive with C1 cash costs and AISC of US$561 per ounce and US$611 per ounce, respectively. Renaissance managing director Justin Tremain said, "The PFS shows a robust, low operating cost project that will generate sig- nifcant cash fow of approximately US$45 million per annum in the early years with resilience to lower gold prices. It is an uncomplicat- ed project with excellent grade. A new resource model with similar grade and ounces to the previous resource model, clearly demon- strates the robust nature of the deposit." Renaissance recently received frm commitments to raise $1.7 million through a placement to new and existing institutional and sophisticated shareholders. In addition, a Share Purchase Plan was offered to eligible shareholders to raise up to $300,000. In con- junction, OZ Minerals' entire shareholding of 50 million shares was placed to institutional and sophisticated shareholders. PFS shows Okvau is robust Inspecting core samples from Geopacifc Re- sources' Kou Sa Copper-Gold Project. Geopacifc steps up Kou Sa program

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