Primarily covering the proposed open pit development at Jugan Hill towards the northeastern end of the Bau Central gold trend, the study indicated current reserves of 2.44 million tonnes at 1.47g/t gold, containing a proven 162,800 ounces of gold, and 6.48 million tonnes of 1.61g/t gold, containing a probable 334,600 ounces of gold.
The study also identified an optimum process for production a gold-rich concentrate that will initially be shipped for smelting and refining processes.
Besra is currently holding discussions with Asian companies for a smelter off-take agreement, and has already received an indicative offer from one of the four smelters.
Besra CEO John Seton said the release of the stage 1 feasibility study will serve as a significant step forward in the company’s corporate development.
”The initial four year mine life will be extended as nearby deposits are developed utilizing existing plant and infrastructure, and having the effect of further improving the project economics,” Seton added.
The company has already started the Stage 2 pre-feasibility study, which incorporates southwesterly extensions of the Jugan Hill deposit and adjacent deposits, and is expected to extend the mine life to 12 years, increase total production to over 1m oz, and should at least replicate or exceed the financial returns of Stage 1.
Calling Bau exploration to be at relatively early stage, Seton said, ”The exploration success rate suggests that continued exploration has the potential to progressively expand resources and reserves over decades to come; with the potential to establish Bau as one of the major goldfields of Asia.”
Once in production, the Bau project is estimated to be the 13th largest gold producing property in Asia.
