Tampia Gold Project

Location of Explaurum Limited Projects
Location of Tampia Gold Project

Tampia Gold Project

Explaurum’s key asset is the 90% interest in the Tampia Gold Project, located approximately 240km east of Perth in the wheat belt of Western Australia.

In May 2018 the Company announced the completion of a Feasibility Study for the development of Tampia, which confirmed it as a high-margin gold project.  In addition, Explaurum announced an initial Ore Reserve of 7.2 Mt grading 2.09 g/t Au (485,000 oz contained).

Highlights of the feasibility study include:

  • Tampia confirmed as technically sound and financially robust with an initial Project life of six years with operating costs in the lowest quartile of gold projects globally
  • Mining plan based on staged development of a single open pit and conventional SAG milling, Gravity, Flotation with ultra-fine grind (UFG) and enhanced leaching of concentrate, and carbon-in-leach (CIL) circuit based on 1.5 Mtpa throughput
  • Updated Mineral Resource of 675,000oz gold from 11.7 Mt grading 1.79 g/t Au
  • Initial Ore Reserve of 485,000 oz gold from 7.2 Mt grading 2.09 g/t Au
  • Initial mine plan of 534,000 oz gold from 8.0 Mt grading 2.07 g/t Au with excellent potential for resource growth
  • Estimated all-in sustaining cost (AISC) is A$896 oz for the first two years of operations and A$998 oz over LOM, with 104,000 oz Au produced for each of the first two years of operations
  • Pre-production Capital Cost estimate is A$119 million (including a $10.8 million contingency) and payback in 18 months from commissioning
  • Net Present Value (NPV) at 8% discount rate is A$125 million (pre-tax) and Internal Rate of Return (IRR) is 47% (pre-tax) at A$1650 oz gold price
  • Timeline for Project development is completion of Bankable Feasibility Study (BFS) in October 2018, with subsequent construction subject to development finance, regulatory and Board approvals (expected December 2018)
  • Major exploration program over new gold targets to continue through 2018 and 2019; any growth in resource inventory expected to augment current planned mine life

Location of Explaurum Limited Projects

Tampia covers an aggregate area of 327 km2, comprising two granted mining leases and nine exploration licences. EXU has a 90% interest in the two mining leases and one exploration licence, and 100% interest in the remaining exploration licences.

The Tampia Mineral Resource estimate has been updated by independent resource consultants RSC as part of this Study and classified and reported in accordance with the JORC Code (2012). The Tampia Gold Project Mineral Resource is inclusive of Mineral Reserves (Table 2).

Location of Explaurum Limited Projects

EXU is well-funded to carry out additional work aimed at increasing the Mineral Resource for early stage processing, with further exploration of shallow gold mineralisation in the Mace prospect area, within one kilometre of the proposed open pit, as well as through the conversion of existing Inferred Resources.

2018 Work Program

The Company’s work program for 2018 to enable completion of a Bankable Feasibility Study (BFS) includes:

  • Obtaining all necessary regulatory approvals and licences
  • Infill drilling (10m x 10m) in the southern portion of the proposed pit area where mining operations are planned to commence, to potentially upgrade in this area of the deposit:  
    • The current Indicated Resource to Measured Resource
    • The current Probable Reserve to Proven Reserve

 This work will test the Resource estimate model to increase confidence and precede but be part of normal grade control drilling included as part of mining operations. This drilling has commenced.

  • Grid drill the recently reported supergene mineralisation which has been remobilised from erosion of the outcropping Tampia deposit and deposited downslope within a zone extending over 4.5km from the proposed pit boundary, with the aim of bringing this recent discovery into resource category for early stage mining (if warranted). The first phase of this drilling program has been completed.
  • Testwork currently in progress on improved processing options for fresh ore indicates overall recovery may be increased by up to 5%.

FEASIBILITY STUDY PARAMETERS

The Feasibility Study was based on the following key parameters:

  • Mineral Resource of 11.7 million tonnes at 1.79 g/t Au, which at cut-off grades of 0.3 g/t Au (weathered) and 0.45 g/t Au (fresh), results in a total Resource of 675,000 oz gold, classified and reported in accordance with the JORC Code (2012).
  • Open pit mining operations to be conducted by EXU using a dry hire equipment contract and a drill and blast contractor.
  • Process plant and infrastructure designed and built on an engineering, procurement and construction management (EPCM) basis.
  • Power supply provided by an independent Power Producer contract with an 8 MW LNG power station.
  • Process water to be sourced from underground aquifers to provide supply beyond the current planned Project life of six years.

Tampia History

BHP Minerals (‘BHP’) discovered gold mineralisation at Tampia in 1987 and BHP and subsequent owners in the 1990s established the following features of the Tampia mineralisation: 

  • Gold mineralisation is high grade and near surface
  • The resource was well drilled in part to mostly shallow depth, but open in all directions and at depth
  • The resource area has significant gaps in drilling, demonstrating that successful infill drilling could significantly increase the resource
  • There is significant potential for further discoveries within 10km radius with a number of strong geochemical and auger/RAB anomalies
  • Tampia is located on private land close to sealed roads, power, water, accommodation, services and labour
  • Tampia is located 135km by road from Westonia and about 185km by road from Southern Cross and Marvel Loch 

Only minor exploration was carried out at Tampia from the mid-1990s until Explaurum acquired an 80% (now 90%) interest in April 2012. At that time, although the Project is located within an under-explored greenstone belt, technical aspects of the deposit such as geology, structure, controls on mineralisation and metallurgy were poorly understood, but what was known regarding the mineralisation (open-pittable resource with near surface, high grade mineralisation open in all directions) was highly attractive to Explaurum.