Alice Queen (ASX:AQX) has released the results of its project definition study (PDS) for the Horn Island Gold Project in Queensland, outlining compelling economics for the mine restart.
The project is held by Alice Queen’s subsidiary, Kauraru Gold, with ownership comprising 84.5% held by Alice Queen, 7.5% by the Kaurareg Aboriginal Land Trust, and 8% by other shareholders.
The PDS focuses on the Horn Island pit area, developing a forward plan needed to advance the Horn Island Gold Project considering key geological, mining, processing, and infrastructure needs.
The study also investigates the ore processing facility and all related infrastructure and includes a metallurgical review, process flowsheet development, plant description, capital cost, and operating cost estimates.
Alice Queen has also released an updated mineral resource estimate (MRE) for the project, using the same block model as the previous MRE released in November 2021, with a cut-off of greater than or equal to 0.3 grams per tonne gold within an optimised pit shell reflecting current gold prices.
The MRE outlines 15.4 million tonnes @ 0.82g/t gold for 404,000 ounces of contained gold in the indicated category and 5.7 million tonnes @ 0.89g/t gold for 165,000 ounces in the inferred category.
The PDS also outlines a seven-year mine life for the project, with an additional four years of stockpile processing, with 50,000 ounces per annum produced during the mining phase and an additional 29,000 ounces per annum produced during the stockpile processing phase.
The study also outlines an initial estimated capital cost of $126 million with a payback period of 1.1 years. The estimated net present value at an 8% discount is $706 million (before tax), with an estimated internal rate of return of 109% before tax.
Alice Queen has appointed GBA Capital as the advisor for project financing, and notes that the availability of funding remains a key risk to future development of the project.
The company also notes that the PDS does not assume a development or production date and explains that further work is expected to take 18–24 months in order to advance Horn Island toward development.
Alice Queen is a gold and copper explorer focused on developing mining opportunities in Australia and Fiji.
Write to Amy Rotman at Mining.com.au
Images: Alice Queen
