A scoping study shows a strong case for the development of an open-cut gold mine at Mount Mackenzie in Central Queensland, Resources and Energy Group says.
The company was granted a mineral development licence last month for the entire Mount Mackenzie mineral resource and all land required for the project’s development.
Resources and Energy Group said today the scoping study identified a 300,000-tonnes-per-annum open-cut development with on-site gold plant as the best case to progress.
The project, about 150km north-west of Rockhampton, would cost about $13 million to bring online.
“The outcomes of the scoping study based on the recently optimised mineral resource for the Mount Mackenzie gold project indicate the potential for development of a low-cost and profitable project,” chief executive officer David Frances said.
“The study concludes that a mine lief of about four years with production of 45,000 oz gold would provide an attractive payback period of approximately 15 months based on an initial capital cost of approximately $13 million.
“The study has also identified a potential mining and process route which would enable recovery of a greater proportion of the primary mineral resources than presently contemplated.”
Mr Frances said the feasibility study for Mount Mackenzie and exploration potential in the immediate vicinity were company priorities.