Great Boulder Resources (ASX:GBR) has received results from a Scoping Study, outlining a robust mining opportunity and value of the Side Well Project, for the Ironbark deposit in Western Australia.
The study highlights robust economics for a short 31-month mine life, with a pre-tax net present value of $137 million and an internal rate of return of 152% at a spot gold price of $5,064 per ounce.
A production target for Ironbark comprising 1.26 million tonnes @ 2 grams per tonne for 79,000 ounces totals 648,000 tonnes @ 1.4g/t gold producing 30,000 ounces in stage one and 615,000 tonnes @ 2.5g/t gold producing 49,000 ounces in stage two.
The study includes an estimated $3.1 million of capital expenditure for establishing stage one of the surface infrastructure.
Managing Director Andrew Paterson says Ironbark was selected as the subject of the first economic study because the company can mine the deposit without interfering with ongoing work at other deposits and prospects.
“In the longer term, we anticipate this is just the beginning at Side Well, and we will be outlining a much larger, long-life mining opportunity with the work planned in the next 12 to 18 months,” Paterson says.
“This clearly demonstrates the underlying value represented by Great Boulder. We are now progressing the various field studies required for mining approvals and processing.”
Great Boulder, which has a market capitalisation of $62.66 million, says the Scoping Study outcomes compare favourably to its financial position with $15 million in cash post completion of the second tranche of a previously reported placement.
Paterson notes the hydrogeology work is underway and the company aims to have everything completed by the end of 2025. Upon completion, Great Boulder will lodge a mining approval application as soon as a mining lease is granted.
Government approvals are anticipated to take six to nine months for assessment.
Ironbark is a shallow orogenic gold deposit discovered by Great Boulder in 2021 within the eastern corridor of the Side Well Project.
The company notes the study did not include recently drilled extensions to the Ironbark deposit including 8m @ 8.57 grams per tonne gold from 92m. As such, Great Boulder believes Ironbark has potential for a “significant” resource upside.
Great Boulder Resources is focused on exploring for gold and base metals in Western Australia. The company is primarily focused on its Mulga Bill deposit within the Side Well Gold Project.
Write to Aaliyah Rogan at Mining.com.au
Images: Great Boulder Resources
