Antipa Minerals (ASX:AZY) has released the results of an updated Scoping Study confirming that its wholly owned Minyari Dome Gold Project will be a technically and financially viable stand-alone operation.
The study forecasts the +10-year, 3-million-tonne-per-annum operation will have a post-tax net present value (NPV) (using a 7% discount rate) of $598 million and an internal rate of return (IRR) of 46% at an assumed gold price of $3,000 an ounce.
The NPV and IRR increases to $1.2 billion and 79%, respectively, at an assumed gold price of $4,000 an ounce.
Gold production for the first 10 years would total 1.3 million ounces at an average rate of 130,000 ounces each year, with a forecast average all-in sustaining cost of $1,721 an ounce.
The outcomes of the Scoping Study place the payback period at two years from the start of gold production.
The initial combined open pit and underground mine schedule is based on resources of 30.2 million tonnes at 1.5 grams per tonne gold for 1.5 million contained ounces.
This would be processed using a standard carbon-in-leach process plant at an estimated gold recovery of 90%.
Antipa forecasts the development will require $306 million in pre-production capital, including $90 million for pre-production mining.
The company believes there is latent potential to further boost economics with resource upside and by-product opportunities.
Managing Director Roger Mason says over the past 18 months, Antipa has further unlocked the potential of Minyari Dome, delivering a 33% increase in the resource estimate, along with a pipeline of new high-prospectivity gold-copper targets.
“With significant potential for further value to be added via success with the drill bit, we remain committed to a substantial exploration program through 2024 and 2025 across our 100%-owned Minyari Dome Project,” he says.
“Strategically, Minyari Dome’s location – just 35km from Newmont’s (soon to be Greatland Gold’s) Telfer 22 million tonne per annum processing facility – adds further optionality.
“While the base case remains a stand-alone operation, as outlined in this Scoping Study update, we will naturally continue to assess in parallel any potential third-party pathways that may offer greater risk-weighted value for our shareholders.”
A phase-two drilling program recently began at Minyari Dome and will run through the final quarter of 2024. Further growth-focused drilling programs are also being planned for 2025.
The Minyari Dome Project spans 877km2 in Western Australia and features the Minyari Dome geological structure that hosts multiple deposits.
Antipa Minerals, which has a market capitalisation of $162.4 million, is presenting on day two of the Noosa Mining Conference running from 13-15 November at the Peppers Noosa Resort.
Mining.com.au is a media partner of the upcoming event. Click here to register.
Write to Angela East at Mining.com.au
Images: Antipa Minerals
