Name of the Project
Yandal gold project.

Location
The project is located about 83 km north-east of Leinster, in the heart of the Yandal gold belt, in Western Australia.

Project Owner/s
Echo Resources.

Project Description
A bankable feasibility study (BFS) has confirmed the Yandal project’s robust forecast economics following a detailed and considered study process. The project has proven and probable reserves estimated at 14.9-million tonnes grading 1.7 g/t gold. Total mineral resources are estimated at 21.1-million tonnes grading 2.1 g/t gold.

The BFS envisages a two-stage project based on openpit mining and processing from two deposits producing 746 168 oz over an 8.5-year mine life. The study incorporates the mining of ore from the Orelia and Julius gold deposits and processing undertaken at the refurbished Bronzewing process plant, based on a throughput of 1.8-million tonnes year.

Ore processed from the Orelia and Julius gold deposits will have an average expected recovery of about 91.5% over the current life-of-mine schedule.

All the currently defined mineral resource estimates at the Yandal gold project are within an openpit mining environment and are a lode style of mineralisation requiring a degree of mining selectivity.

The material to be excavated will be predominantly free dig from surface, with blasting required deeper in the oxidation profile and into the fresh ore zones. Given these conditions, conventional open excavator and trucks will be used.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has pretax net present value, at an 8% discount rate, of A$197-million for Stage 1 and Stage 2 and an internal rate of return of 206%, with a payback estimated at about 12 months after the start of production.

Capital Expenditure
Total preproduction costs are estimated at A$39.3-million.

Planned Start /End Date
The project development to first gold is targeted to be less than six months from the time at which an unconditional final investment decision on Stage 1 is made. Plant refurbishment is expected to take 20 weeks, with mining starting at the Julius and Orelia deposits two months and one month respectively before first ore processing.

Other site works and system development will be undertaken in parallel with these key critical-path project development activities.

Latest Developments
Echo Resources has gained mining approvals for its Yandal gold project.

The mining proposal and the closure plans for the Julius and Orelia orebodies have been approved by the Department of Mines, Industry Regulation and Safety, marking the final approval required to allow for the start of mining activities at the Yandal mine.

The board of Echo conditionally approved the Stage 1 development of the Yandal gold project in 2018.

Echo is completing an updated BFS for the Yandal project, which is expected to be released this month. Project development remains subject to the outcomes of the revised BFS, securing project funding and approval of the board.

Key Contracts and Suppliers
CSA Global (database management and compilation); Mintrex (process plant refurbishment study and metallurgical and engineering overview); Nagrom (Julius metallurgical testwork); ALS (Julius and Orelia metallurgical testwork); Bureau Veritas Minerals (Orelia ore gold testwork); OMC (comminution and throughput modelling); Coffey (Bronzewing tailings storage facility audit and management review); Groundwater Resource Management (Julius hydrology and hydrogeology); Strategic Water Management (Orelia hydrogeology review); Hydrogeologia (updated Julius and Orelia surface water review); Botanica Consulting (environmental surveys, permitting, MMP and MCP, and waste rock classification); Peter O’Bryan & Associates (Orelia geotechnical assessment); Tim Green and Associates (Julius geotechnical assessment); Widenbar and Associates (Julius and Orelia mineral resource estimation); SCME (mine planning and optimisation, ore reserve statement); and PCF Capital (financial modelling).

On Budget and on Time?
Too early to stated.

Contact Details for Project Information
Echo Resources, tel +61 8 9389 8726 or fax +61 8 9467 2896.