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Updated PFS shows strong fundamentals for Santana’s New Zealand project

1st July 2025

By: Tasneem Bulbulia

Deputy Editor Online

     

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ASX-listed Sanatana Minerals’ updated prefeasibility study (PFS) for its Bendigo-Ophir gold project, in New Zealand, has shown strong fiscal outcomes, with an after-tax net present value (NPV) of A$1.52-billion at a current gold price of A$4 950/oz.

It indicates an after-tax NPV of A$780-million at a base-case gold price of A$3 500/oz (30% below current price).

The PFS shows an internal rate of return (IRR) of 65% at the current gold price (39% IRR at base-case); and a profit before tax of A$3.5-billion at the current gold price (A$1.90-billion at base-case).

It also reveals a total cash operating cost of A$1 741/oz at the current gold price (A$1 559/oz at base case).

Moreover, it indicates an all-in sustaining cost (AISC) of A$1 842/oz at the current gold price (A$1 660/oz at base case); and an all-in cost of A$2 132/oz at the current gold price (A$1 950/oz at base case).

The updated PFS is a refinement on the November 2024 PFS, indicating lower pre-production capital requirements.

It shows total construction and establishment pre-production costs of A$277-million, including 10% contingency.

The PFS has also expanded the initial mine life, with a strong production profile indicated.

It shows gold production of 1.25-million ounces over an initial 13.8-year mine life.

It indicates targeted gold output of about 120 000 oz/y in peak mining periods; and production from openpits for more than 13 years and underground operations for seven years, with further underground potential, post future resource conversion.

The PFS also outlines a refined development strategy.

It indicates selective openpit staging and cutbacks focused on near-surface ore to reduce pre-strip requirements; a progressive build-up of gold production; and the plant design has been changed from closed-circuit semi-autogenous-grinding (SAG) mill to three-stage crushing and ball milling at a reduced rate of 1.2-million tonnes a year (with expansion capacity); and a start mining reserve of 15 Mt  at 2.58 g/t gold for 1.24-million ounces.

Environmental, social and governance findings from the PFS include low-emission power potential sourced from grid-connected hydroelectricity, supporting a low-carbon development.

Santana highlights a comprehensive environmental baseline study covering ecology, water, land-use and mine closure rehabilitation strategy, underpinning the project’s ensuing approvals process.

Full reports would become publicly available post submission of the company’s fast-track approvals application.

The PFS shows a modern processing plant with detoxification and closed-circuit water treatment to considerably manage contamination risks with storage of plant waste in low-risk engineered landforms.

It also indicates a project plan designed to generate significant regional employment opportunities, with strong industry multiplier effects and a clear focus on local hiring and workforce training.

It also highlights a project that will generate considerable economic output for the region and the Crown over its initial about 14-year life with a high potential to sustain output beyond the initial mining term, Santana points out. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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