Name of the Project
Lady Julie gold project.

Location
Laverton, Western Australia.

Project Owner/s
Magnetic Resources.

Project Description
An economic update has confirmed a financially attractive standalone project with low-cost, high-margin gold production of 817 470 oz, averaging 104 000 oz/y, over an eight-year life-of-mine (LoM).

The operation comprises the LJN4, LJC and HN9 openpits; a dedicated 2.2-million-tonne-a-year processing plant; and associated services and facilities.

The project has an openpit mining inventory of 16.03-million tonnes at 1.71g/t of gold, containing 883 000 oz of gold. 

Total LoM production includes about 84% indicated and 16% inferred mineral resource, with the indicated resource forming the basis of the production schedule in the first 6.5 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $925-million at A$3 200/oz and an internal rate of return of 135%, with a payback of 12 months from the start of production.

Capital Expenditure
The project will require development capital of $111.3-million, assuming a standalone 2.2-million-tonnes-a-year processing plant and three month preproduction activities.

Planned Start/End Date
Not stated.

Latest Developments
A mining proposal is being finalised to advance a further mining lease application and regulatory approvals to allow for mining.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Magnetic Resources, tel +61 89226 1777 or email info@magres.com.au.