A resource expansion and improved gold price have added an extra layer of shine to the Lady Julie project, near Laverton, in Western Australia, reports owner Magnetic Resources.
Releasing the results of an economic update on Monday, MD George Sakalidis said that Lady Julie was affirmed as one of the high-margin, undeveloped gold projects in Australia.
The economic update focuses on mining the indicated and inferred resources of Lady Julie North 4, Lady Julie Central and Hawks Nest 9.
Lady Julie North 4 is the largest contributor to the study producing over 14-million tonnes of ore during its operation.
With an internal rate of return of 135% at a gold price of A$3 200/oz and pretax net present value of A$925-million, Lady Julie has “exceptionally robust” financial metrics. reported Sakalidis.
The project required development capital of A$111.3-million and boasts a payback period of about one year from the start of production.
Over an eight-year mine life, Lady Julie will produce 817 470 oz, averaging at 104 000 oz/y, at an all-in sustaining cost of A$1 1 386/oz.
“The project’s low-cost profile and strong financial return metrics are primarily driven by the extraordinary near-surface, high-grade nature of the Lady Julie Central and Lady Julie North 4 deposits. This low-cost profile places the project in the bottom half of the cost curve of gold producers in Australia,” said Sakalidis.
He stated that further refinement of the project’s economics would be carried out this year with scope to further improve the economics of the project. 