Predictive Discovery (ASX:PDI) will proceed to the next stage as it seeks translation of the Prefeasibility Study (PFS) and Environmental and Social Impact Assessment (ESIA) for the Bankan Gold Project in Guinea is well advanced.
ESIA submission to the Government of Guinea is expected to occur shortly amd Predictive Discovery is aiming to secure the exploitation permit within six months of submission.
The company says the ESIA is the result of more than two years of environmental and social work, including baseline surveys and studies, community liaison, and government and stakeholder engagement.
Based on the technical and financial outcomes of the PFS, the company has endorsed proceeding to a Definitive Feasibility Study (DFS). Planning for the DFS phase is underway and the company has already started workstreams in relation to several identified project enhancement opportunities.
Near-resource and regional exploration drilling is ongoing on a results-driven basis. Infill drilling will begin shortly at BC and Gbengbeden, targeting inferred mineral resources below PFS pit designs.
Commenting on the PFS outcomes, Managing Director Andrew Pardey says the milestone comes four years to the day after the NEB discovery was announced. The Bankan Gold Project has since developed into a ‘company-defining’ and globally significant gold project.
Pardey adds: “In that time, PDI has defined a 5.38Moz Mineral Resource, completed more than two years of environmental and social studies, and established significant further exploration potential across the permit package.”
“Completion of the PFS now confirms the Project is not only one of the largest gold discoveries in West Africa for a generation, but also a future tier-one gold mine. It can become Guinea’s largest gold mine, with average annual production of 269koz over the currently defined mine life of 12 years. Importantly, the PFS includes a maiden Ore Reserve estimate of 3.05Moz, representing 74% conversion of the Indicated Mineral Resource.”
The MD says the financial metrics are ‘strong’, with a post-tax NPV5% of nearly US$1.4 billion and IRR of 42% at current gold prices. Financials remain robust at the conservative PFS base case price assumption of US$1,800/oz, with an NPV of US$668 million and IRR of 25%.
The upfront capital cost requirement of US$456 million is ‘very competitive’ and all-in sustaining costs of US$1,130/oz deliver high profit margins.
“The PFS was carried out to a globally high standard and significantly de-risks the technical and financial viability of the project. A key next step for PDI is to de-risk permitting. In this regard, the PFS and ESIA are key documents in the application process for an Exploitation Permit and are on track to be submitted to the Government of Guinea shortly,” Pardey says.
“PDI takes its environmental and social obligations very seriously and our work in these areas will be ongoing. Completion of the ESIA is a key milestone for the company, and it highlights a range of mitigants and management plans to effectively manage risks, with importantly, no fatal flaws identified.”
The company says multiple opportunities have been identified which have potential to significantly improve the technical and financial outcomes reported in the PFS.
Pardey adds that part of the upside is the significant potential for additional deposits to be discovered close to the existing ore reserves and regionally within the broader permit package. PDI
He says the company is ‘highly confident’ in growing the resource base and increasing the mine life beyond the current 12 years.
Write to Adam Orlando at Mining.com.au
Images: Predictive Discovery
