New Murchison Gold advances toward production with Crown Prince feasibility study
ASX-listed New Murchison Gold (NMG) on Monday announced the results of a feasibility study for its Crown Prince gold deposit in Western Australia, confirming a robust pre-tax cash flow of A$226-million over 30 months at current spot gold prices of A$4 385/oz.
The study highlights the potential for rapid development, with first ore sales targeted for August and mining starting in June 2025. Capital expenditure (capex) to begin production is estimated at A$5.4-million, which the company said was lower than comparable projects owing to its ore purchase agreement (OPA) with Westgold Resources.
The feasibility study estimates an ore reserve of 0.89-million tonnes grading 4.8 g/t gold, containing 140 000 oz. All ore will be transported to Westgold’s Bluebird Mill for processing under the OPA, reducing infrastructure costs and fast-tracking production.
"The results of the feasibility study provide a sound basis for proceeding with the commencement of mining at Crown Prince. Feasibility work to expand the mineral resource, optimise the overall mine plan and derisk the project in 2024 has contributed to successful advancement of the project. Securing an OPA provides a solid basis for the project as little capex is required, and the path to production is significantly shortened," said NMG CEO Alex Passmore.
The deposit’s high-grade Southeast zone offers strong early cash flow, supporting NMG’s transition from explorer to producer. Additional exploration in 2025 will assess underground potential and adjacent deposits, including Lydia and New Murchison King.
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