Production Guidance for Old Pirate High Grade Gold Deposit
Perth, Sep 30, 2014 AEST (ABN Newswire) - Darren Holden, Managing Director of ABM Resources (
ASX:ABU) said, "The presentation of our first year's production forecast is an important milestone for ABM. We look forward to commencing mining as soon as possible and realising our goal of delivering a new high-grade, low cost, open-pit mining operation in Australia."
Highlights:
- 50,000 to 60,000 ounces of gold production in the first year.
- 11g/t to 13g/t gold head-grade.
- Staged approach to mining with 5 initial open-pits to an average depth of 35m.
SUMMARY
Staged Approach to Development:
- Pending receipt of remaining approvals.
- Five initial open pits averaging 35 metres depth with a maximum 50 metres depth.
- Pit expansions, including along strike and to depth, to be staged for production beyond the first year.
Production guidance for the first full year of mining, assuming processing at the Coyote Gold Plant, is:
- Ore to be mined and processed: ~150,000 tonnes
- Estimated head grade: 11g/t to 13g/t gold
- Estimated production: 50,000 to 60,000 ounces of gold recovered
- Operating costs: $690 to $790 per ounce of gold recovered
- Initial capital costs: $4.6M + $2M lease payment for plant post commissioning
All costs in Australian Dollars.
Schedule and Update on Conditions Precedent to Coyote Lease agreement:
- ABM is engaged with the Northern Territory Government, regarding the impact of cross-border costs, on determination of the Territory net profits royalty.
- Mine Management Plan to be submitted to the Northern Territory Government in the first week of October.
- All remaining conditions are expected to be completed by the end of 2014 and ABM is negotiating with potential mining contractors for immediate commencement of development.
To view the Production and Guidance Plan detail, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ABU-692865.pdf
About ABM Resources NL
ABM Resources (ASX:ABU) is developing several gold discoveries in the Central Desert region of the Northern Territory of Australia. The Company has a multi-tiered approach to exploration and development with a combination of high-grade production scenarios such as the Old Pirate High-Grade Gold Project, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Hyperion Gold Project. In addition, ABM is committed to regional exploration programs throughout its extensive holdings including the alliance with Independence Group NL at the regional Lake Mackay Project.
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