Alice Queen (ASX:AQX) has begun the process to update the 2021 Scoping Study for the Horn Island Gold Project in Queensland, based on the latest gold price and other key assumptions, operating costs, and capital expenditure.
This news comes after the continued increase in gold prices, which represents a 150% rise from the $2,450 per ounce when the Scoping Study was released.
Horn Island’s previous study outlined a net present value of $140 million and internal rate of return of 44.3%, based on a gold price of $2,450 per ounce. Horn Island has a 8.5 year mine life, with an initial capital expenditure of $75 million and all-in sustaining costs of $1,388 per ounce.
Managing Director Andrew Buxton says the company will begin the update of the study to capture the latest gold price and overall key physical and economic assumptions.
“As we focus our efforts on generating an updated Scoping Study, and target a subsequent Prefeasibility Study and Definitive Feasibility Study, Alice Queen and the GBA team will work in parallel to consider a range of potential project financing structures with a view to identifying the most practical and value accretive capital structure/opportunities for the company,” Buxton says.
The company has also appointed GBA Capital as financial advisor for the development and financing of the project including to evaluate the company’s funding options and implement the most value accretive funding package for the project.
Alice Queen is also continuing to review partnering opportunities.
The Horn Island Gold Project is an intrusive-related gold system located in the Torres Strait, Far North Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: Alice Queen
