PRESS RELEASE
29 JANUARY 2015
CMGP - FEASIBILITY AND DEVELOPMENT STRATEGY
Metals X is pleased to release its revised feasibility study and development strategy for the Central Murchison Gold Project.
Following the acquisition of the Meekatharra Gold Operations as a bolt on to its Central Murchison Gold Project in the middle of 2014, Metals X has been re-evaluating its development strategy for the project. The dynamics and development options for the project changed significantly with the new addition of a 2.0 mtpa processing plant and significant operational infrastructure.
The expanded project contains 72 separate mineral resources as mining opportunities. Metals X has devised a development strategy to initially develop these in a systematic fashion with an overall objective to establish long-term and sustainable production from the major underground mines within the package.
Metals X's CEO Peter Cook said,
"The outcomes of the study and development plan are very pleasing. The initial development plans starts with a 13 year mine- life, average annual gold production over the first 10 years of 200,000oz per annum. The margins are good with Total Cash Cost of production of A$1,060 per ounce compared to an implied gold price of A$1635 per ounce with the Project generating EBITDA over the initial plan of A$1.31 billion. The economics look great with an NPV(8%) of $636 million (pre-tax) and an IRR of 364%."
"Most importantly, and in keeping with the Metals X style, it presents a low-cost and low-risk development option for our shareholders with a maximum cash draw down of $42 million and a simple pay-back of 1.5 years, all of which is capable of being funded from existing cash reserves."
Metals X intends to move the project to production with mining commencing by the middle of 2015.
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