Ann: Positive Scoping Study Confirms Economic Via, page-6

re: Ann: Positive Scoping Study Confirms Econ... AFRICAN-focused Papillon Resources has unveiled a positive scoping study for its $US298 million ($A288.9 million) Fekola gold project in Mali, showing potential for an 11-year mine life.


Based on current mineral resource estimates, the Fekola project was found to support an average annual production profile of 231,000 ounces of gold.

Fekola holds a total inferred and indicated resource of 40.1 million tonnes of ore at an average grade of 2.4 grams per tonne for 3.14 million ounces contained gold.

Papillon said the scoping study revealed the technical and economic viability of Fekola, alongside its capacity to operate with positive cash margins.

Operating costs at the project were estimated to average $596 per ounce over the 11-year mine life.

Start-up capital costs of $298 million comprise $160 million for the processing plant and $138 million for project infrastructure.

Results from the study indicated the project had the capacity to generate pre-tax cash margins of $145 million at a gold price of $1300/oz.

This demonstrated the capital costs for the plant and infrastructure could be paid pack within three years from the start of production.

The scoping study was based on open pit mining operation, mined to a depth of 250m with an average strip ration over life of mine of 1:1.9 ore to waste.

A conventional gravity concentration and carbon in leach processing plant was also used in the study. It is anticipated it will process an average annual throughput of 4Mt.

Papillon said there was strong potential to increase the production level and mine life through ongoing exploration work.

The company will now commence a pre-feasibility study, which is due for completion by the second quarter of next year.

During the PFS phase, further studies will focus on metallurgical tests, mine scheduling, and geotechnical and infrastructure elements of the project, with the aim of reducing the capital and operating costs.

In an effort to upgrade the resource, the next drilling campaign will start later this month.

Papillon shares jumped by 6.2% to $A1.95.

from miningnews last night