Name of the Project
Bankan gold project.

Location
Guinea.

Project Owner/s
Gold reserve developer Predictive Discovery Limited (PDI).

Project Description
A prefeasibility study (PFS) has outlined robust production and financial metrics for the project, confirming its status as one of the most exciting development projects worldwide.

The project has a maiden probable ore reserve estimate of 57.7-million tonnes at 1.64 g/t gold for 3.05-million ounces of contained gold across the project’s NEB openpit, NEB underground and BC openpit areas.

An ore reserve case and an extension case have been developed for the project.

Ore Reserve Case
The production target and forecast financial information are based on indicated mineral resources/probable ore reserves.

The ore reserve case proposes a mine life of 11 years, processing 5.5-million tonnes a year of material for average production of 256 000 oz/y of gold. Total gold production is estimated at 2.82-million ounces, from mill feed of 57.7-million tonnes at 1.64 g/t gold containing 3.05-million ounces of gold.

Extension Case
The production target and forecast financial information comprise, on a contained gold basis, 87.2% indicated mineral resources or probable ore reserves and 12.8% inferred mineral resources.

The extension case produces an average of 269 000 oz/y over 12 years for total production of 3.23-million ounces, from mill feed of 61.5-milllion tonnes at 1.77 g/t gold containing 3.49-million ounces of gold.

Conventional drill, blast, truck and shovel methods will be used for the NEB openpit. The NEB underground orebody will be mined using transverse longhole open stoping with paste fill.

The 5.5-million-tonne-a-year processing plant will use conventional carbon-in-leach technology with upfront gravity recovery.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The ore reserve case delivers a pretax net present value (NPV), at a 5% discount rate, of $848-million and an internal rate of return (IRR) of 30.3% at a gold price of $1 800/oz, with a payback of 1.5 years.

The extension case delivers a pretax NPV, at 5% discount rate, of $998-million and an IRR of 31.3% at a conservative $1 800/oz, with a payback of 1.5 years.

Capital Expenditure
Both cases require upfront capital of about $456-million.

Planned Start/End Date
The project has a two-year construction period.

Latest Developments
Predictive Discovery has received binding commitments from the Lundin family and associates, as well as Hong Kong-listed Zijin Mining Group, to raise almost A$70-million through a strategic private placement.

The Lundin family is the majority shareholder of the Lundin Group of companies through a family trust.

The family intends to invest about A$45.1-million to acquire a 6.5% shareholding in Predictive, while Zijin plans to invest A$24.1-million to acquire a shareholding of 3.5%.

The private placement totals 261-million ordinary shares at an issue price of A$0.265 apiece.

Predictive will use the proceeds to advance a definitive feasibility study, continue regional exploration, do early development activities and progress environmental and social programmes.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Predictive Discovery Limited, tel +61 8 9216 1020.