ASX-listed Santana Minerals on Wednesday announced that its subsidiary, Matakanui Gold, had entered into a binding agreement to acquire Ardgour Station – a strategic landholding with competing land uses over part of the Bendigo-Ophir Gold Project (BOGP).

The staged acquisition, valued at NZ$25-million, is subject to Overseas Investment Office approval and includes four land records of title covering 2 880 ha, encompassing irrigable lands, water rights, and infrastructure.

The acquisition will nullify a 1% gross production royalty over about half of the currently defined RAS orebody, as well as the down-plunge potential of the RAS, CIT and SRX deposits. It also secures freehold ownership of the proposed process plant site and most of the infrastructure footprint for the BOGP.

Settlement is contingent on the receipt of project consents under New Zealand’s new Fast Track Approvals Act. Santana retains the right to extend the settlement date if consents are delayed, with a 2% a year interest charge applying to outstanding funds.

“We are pleased to have completed a respectful and mutually beneficial transaction with the owners of the Ardgour Station. This secures our development rights for the majority of the Bendigo-Ophir Gold Project infrastructure and uncomplicates competing land uses when the project proceeds,” said CEO Damian Spring.

“We are also very pleased that the owners have joined themselves at the hip with us in sharing the tremendous benefits and upside the development can have for all its stakeholders by taking part of their consideration in share ownership of the parent company,” he added.

On Tuesday, Santana published an updated prefeasibility study (PFS) for BOGP, with strong fiscal outcomes, including an after-tax net present value (NPV) of A$1.52-billion at a current gold price of A$4 950/oz. It indicates an after-tax NPV of A$780-million at a base-case gold price of A$3 500/oz (30% below current price).

It also reveals a total cash operating cost of A$1 741/oz at the current gold price (A$1 559/oz at base case), and an all-in sustaining cost (AISC) of A$1 842/oz at the current gold price (A$1 660/oz at base case).

The updated PFS is a refinement on the November 2024 PFS, indicating lower pre-production capital requirements. It shows total construction and establishment pre-production costs of A$277-million, including 10% contingency.

The PFS has also expanded the initial mine life, with a strong production profile indicated. It shows gold production of 1.25-million ounces over an initial 13.8-year mine life. It indicates targeted gold output of about 120 000 oz/y in peak mining periods; and production from openpits for more than 13 years and underground operations for seven years, with further underground potential, post future resource conversion.