BIRD-IN-HAND GOLD PROJECT HIGHLY PROFITABLE – LATEST STUDY*
Terramin Australia has announced first forecast financial results for its proposed Bird-in-Hand Mine at Woodside. The financial results highlight A$187 million in EBITDA1 and a post-tax NPV2 of $101m and IRR3 of 96%.
CEO Richard Taylor said: "Terramin is excited to be able to demonstrate progress on the high-grade, low-cost Bird-in-Hand project. Terramin has updated its Bird-in-Hand scoping study for current price and costing information as a stage-gate for commissioning feasibility study-level design works."
Over the 5 year Life of Mine the company's processing facility at Strathalbyn will produce an average of 47,000 ounces per annum of gold (92% recovery) and 22,000 ounces of silver (92% recovery) in concentrate, at 11 g/t gold and 5 g/t in silver by-product credits.
The strong profitability of the proposed mining operation derives from its high grade and low capital. If the mine were in operation today it would be the second or third highest-grade operation in Australia. There has been strong success in neighbouring states from re-opening historical gold mining operations such as Kirkland Lake Gold's Fosterville operation in Victoria. Fosterville holds the title as the highest-grade mine in Australia and has rejuvenated Victoria's gold industry.
"The project has benefitted from extensive preparatory work undertaken as part of the mining lease application and community engagement process. The result of this work has been to address aspects of the development based on recently completed study work, such as water management, and which represent an evolution of earlier studies".
Terramin holds extensive tenement areas in South Australia, which host more than 200 historical gold mining operations. Terramin aims to treat mined material from its Bird-in-Hand mine at its processing facility at the Angas Zinc Mine in Strathalbyn.
The approach is aimed at returning at least 40 jobs to Strathalbyn and create more than 100 in the Adelaide Hills.
Mr Taylor said: "We are constantly approached by former employees and people from the area now working interstate who want to come back to SA and who ask when we can commence operations. With the completion of our Managed Aquifer Recharge (MAR) water management program and with the financials looking good, we are that much closer".
Jobs at Woodside Mine and Strathalbyn Processing Facility
To create a pipeline for regional business development, Terramin will be commencing pre-registering interested people and companies looking to supply the operations in Q1 next year. A focus will be on graduates who will be entering the workforce and apprentices who will be finishing trades training in 2020. Terramin did this successfully in Strathalbyn.
The project will create 140 direct jobs at both Woodside and Strathalbyn and sustain a further 420 indirect jobs.
Mr Taylor said he was determined to continue Terramin's policy that was delivered in Strathalbyn to employ locally, to create job training opportunities and to use local suppliers and services wherever possible.
"We delivered on that policy in Strathalbyn and it will continue in Woodside and the Hills region. "We recognise that good management of community relationships is necessary to our business success and the management of our operations. Terramin is committed to working with communities where we operate to maximise the benefits and minimise the impacts resulting from our activities".
Terramin has received strong interest from many areas on whether South Australia could follow suit with Victoria and Western Australia in a gold led economic revival. Mr Taylor said: "Many people are watching developments in South Australia closely, and the ability to get a new mine, such as Terramin's Bird-in-Hand project into production will be a good sign for the future."
Mr Taylor said the financial benefit and contribution to the state will be more than $200m in direct growth in addition to royalties, payroll and other state taxes.
The project footprint at Woodside is small and has been designed by landscape architects to fit into the rural industry landscape. The re-opening of the Angas processing facility at Strathalbyn will involve activity similar to that during past operations of the Angas Zinc Mine.
Terramin has conducted a trial Managed Aquifer Recharge (MAR) drilling program which has further demonstrated the ground water modelling developed in the prior 5 years is fit for purpose and further confirms the site's amenability to MAR as a water management solution. Stage 2 MAR injection testwork of the recently drilled bores will be undertaken when government approvals are gained. The MAR drilling was conducted under a budget of $1.1m and significantly added to the understanding of water management.
View the full presentations issued at the IMARC Conference in Melbourne: *
https://www.terramin.com.au/wp-content/uploads/2018/10/181030-ASX-Release-Bird-In-Hand-Scoping-Study-Results_MASTER_FINAL_ASX-REV.pdf
And the full Terramin Investor Presentation:
https://www.terramin.com.au/wp-content/uploads/2018/10/181030-Investor-Pres-V16_PM.pdf
IMARC - the International Mining and Resources Conference is Australia's largest mining event. It brings together over 6,000 decision makers, mining leaders, policy makers, investors, commodity buyers, technical experts, innovators and educators from over 90 countries for four days of learning and networking.
