Name of the Project
Simberi sulphide gold project.

Location
Simberi Island, in the province of New Ireland, Papua New Guinea.

Project Owner/s
Gold miner St Barbara.

Project Description
A feasibility study has highlighted a robust project with strong financial returns.

Key changes from the 2020 prefeasibility study (PFS) include an increase in nameplate capacity.

The mill throughput has increased from 2.7-million tonnes in the 2020 PFS to three-million tonnes a year in the feasibility study, with an option to expand to 3.7-million tonnes a year.

Average sulphide gold production has remained the same at 160 000 oz/y.

The project’s mine life has decreased from 15 years in the 2020 PFS to 11 years in the feasibility study.

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 $320-million at $1 500/oz, compared with $233-million at $1 350/oz in the PFS 2020.

The pretax internal rate of return is estimated at 52%, compared with 63% in the 2020 PFS.

The pretax payback has increased from two years in the 2020 PFS to three years in the feasibility study.

Capital Expenditure
Capital expenditure has increased to between $130-million and $150-million in the 2020 PFS to between $160-million and $170-million in the feasibility study.

Planned Start/End Date
First sulphide ore is scheduled for 2024, compared with 2023 in the 2020 PFS.

Latest Developments
St Barbara has accelerated its decision-making process by selecting the saleable concentrate flowsheet option for its Simberi project, three months ahead of schedule.

The latest testwork has also shown that Simberi’s Sorowar ore has lower competency than earlier assessments indicated. This finding reduces the average life-of-mine ore competency by 20%, which, in turn, decreases the energy needed for crushing and grinding.

St Barbara has said it is well funded to complete the next phases of work and beyond, including the investment in pre-expansion growth capital. This will enable the firm to deliver the clearest possible scope of work for the final investment decision, expected in the December quarter of 2025. 

Current oxide production at Simberi is expected to operate at around breakeven cash flow for the 2025 financial year, inclusive of funding a significant sustaining capital investment. Accordingly, the investment in pre-expansion growth capital is being funded from St Barbara’s balance sheet.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
St Barbara, tel +61 3 8660 1900 or email info@stbarbara.com.au.