Sihayo updates starter project economics
PERTH (miningweekly.com) – Junior Sihayo Gold has updated the ore reserve and economics for its starter project, in Indonesia, incorporating caustic leaching to improve metallurgical recoveries.
Compared with the updated feasibility study (FS) released in 2022, the project’s projected average metallurgical recoveries have now improved from 71.2% to 83.6%, with total gold production increasing from 551 000 oz to 653 000 oz.
Pre-tax life-of-mine cash flows have increased from $253-million to $353-million, while the post-tax net present value has increased from $114-million to $169-million, and the internal rate of return from 16.2% to 20.4%.
The project’s up-front capital cost estimates have decreased from the $243-million considered in the updated FS to $221-million, while its all-in sustaining costs have increased from $972/oz to $1 007/oz.
“This update vindicates the company’s strategy following the completion of the FS update in February 2022 with significant value uplift to the Sihayo starter project achieved through caustic leaching,” said Sihayo executive chairperson Colin Moorhead.
“We believe caustic leaching is truly transformational for the project given its positive impact on the economics of the openpit ore reserve and its potential to unlock deeper, high-grade mineralisation beneath the current planned pit shell. We now have a technically robust openpit project with attractive economics and the potential for significant upside which we are demonstrating through the outstanding results seen in our latest drilling programme targeting beneath pit mineralisation.”
Sihayo on Tuesday reported an ore reserve estimate of 11.7-million tonnes for the project, grading 1.98 g/t gold for 747 000 oz of contained gold.
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