ASX-listed Great Boulder Resources (GBR) has completed a scoping study on its Ironbark deposit, highlighting robust economics for a short mine life, high-grade, openpit opportunity with discounted pre-tax cash flow of about $137-million and an internal rate of return of 152% at a spot gold price of A$5 064/oz.

The Ironbark deposit is located within the company’s flagship Side Well gold project near Meekatharra, in Western Australia, which hosts a mineral resource estimate of 668 000 oz at 2.8 g/t gold.

The study reveals a production target for Ironbark comprising 1.26-million tonnes at 2 g/t gold for about 79 000 oz – 648 000 t at 1.4 g/t gold producing about 30 000 oz gold in Stage 1 and 615 000 t at 2.5 g/t gold producing about 49 000 oz gold in Stage 2.

The study also indicates a simple, tabular, steep-dipping deposit geometry and an openpit optimisation based on A$4 000/oz and a two-stage pit design.

The scoping study does not include recent drilling by GBR, which has defined high-grade gold mineralisation up to 90 m south of previous drilling including 8 m at 8.57 g/t gold from 92 m.

The company says Ironbark has potential for significant resource upside.

The scoping study sets out an estimated A$3.1-million of capital expenditure (capex) for establishment of Stage 1 surface infrastructure.

To achieve the range of outcomes indicated in the scoping study, GBR says funding in the order of about A$3.1-million for capex and the establishment of infrastructure will likely be required.

“This is a fantastic result. We selected Ironbark as the subject of the first economic study within our Side Well project because we can mine the deposit without interfering with ongoing work at the other deposits and prospects.

“In the longer term, we anticipate this is just the beginning at Side Well, and we will be outlining a much larger, long-life mining opportunity with the work planned in the next 12 to 18 months. This clearly demonstrates the underlying value represented by Great Boulder,” says MD Andrew Paterson.

“We are now progressing the various field studies required for mining approvals and processing. The hydrogeology work is under way and we aim to have everything completed by the end of this year in order to lodge a mining approval application as soon as the mining lease is granted,” he continues.