Kairos Minerals (ASX:KAI) has completed a Scoping Study, which reveals the Mt York Gold Project as a financially robust gold asset “generating strong returns” using a conservative $3,500 an ounce gold price.
The study estimates pre-production capital requirement of $276 million and forecasts a production target of 657,000 ounces over an eight-year mine life at an all-in sustaining cost of $2,205 per ounce.
Managing Director Peter Turner says the study shows the project has the potential to be an “outstanding” mine with strong margins, robust cashflow, and financial returns.
“The strength of the project is highlighted by the strong forecast IRR of 35% and the rapid payback period of just 2.7 years,” Turner says.
“Importantly, there is immense scope to increase the production profile by continuing to grow the 1.4 million ounce resource.
“This will now be a key focus for Kairos, with an aggressive drilling program planned for early next year. We will drill out the 1,500m extension of the Mt York gold deposit stratigraphy to the north-west, which we know is mineralised in preparation for a new mineral resource estimate that will lay the foundation for our Prefeasibility Study.”
Kairos Minerals, which has a market capitalisation of $36.83 million, reports the projected peak gold production will be 123,000 ounces in the third year of production, with an average of 115,000oz a year between the second and fourth year.
The study forecasts Mt York will have a a net present value of $410 million and an internal rate of return (IRR) of 35.7%.
The study reveals the 4Mtpa conventional carbon in leach processing plant with SAG and ball mall circuit has been identified as the optimum pathway for best return-on-investment.
Kairos is continuing a mining lease application process update including mining agreement negotiations with Nyamal Aboriginal Corporation.
It will also conduct a heritage protection survey over the Talkuwarrana Heritage site, Main Hill northwest extension, and Lucky 13 prospects in preparation for a resource expansion drilling program.
The company will plan and execute desktop and site environmental studies, in parallel will begin work for a Prefeasibility Study.
Kairos Minerals is a gold-focused explorer and developer that owns the Mt York project which has a resource of 43.08Mt at 1g/t gold for 1.39Moz.
Write to Aaliyah Rogan at Mining.com.au
Images: Kairos Minerals
