Burnakura Early Stage Production Readiness
The Company has made the decision to put the Burnakura Project into early stage production based on an internal economic study of the project and a "Proposal for Front End Engineering Design" (FEED) for the planned Burnakura heap leach/CIL production with capital expenditures and operating expenditures prepared by Como Engineers Pty Ltd ("Como Engineers").
The internal economic study at Burnakura included an optimized life of mine for early stage production. This mining plan involves open pit production from extensions to the Alliance, New Alliance, North of Alliance (NOA1, 2, 4, 6 and 7/8), Federal City and Authaal deposits.
The Burnakura Gold Project is ready for construction for the early stage of production. Off-site engineering design, refurbishment and procurement work were completed on long lead items including delivering the crushing circuit to Burnakura site ready for assembly and installation which will reduce construction time from six to three months.
An independent technical due diligence was completed by SRK Consulting with no major flaws for project financing. Other mine development activities include: completion of a power strategy assessment, building the site power model and pit dewatering strategy assessment for early stage production.
The Amended Environmental Protection License for Crushing, Heap Leach and Dewatering was received with approval from the Department of Environmental Regulation ("DER") for the operation of the proposed Heap Leach Facility. The Mining Proposal and the Mine Closure Plan were submitted and approved which completes all DER licensing requirements for operational readiness.
The map below shows the Burnakura Area including the plant location and the Alliance, New Alliance and Federal City Pit Areas.
PEA study- Burnakura Project
Geological, mining and engineering studies are focused on delivering a Preliminary Economic Assessment Report under NI43-101 standards which aims to provide a long term economic scope of the Burnakura Project. This PEA study builds on the previous internal economic assessment which only included open pit material, but now utilizes both open pit and underground sources. The PEA will also include an updated mineral resource estimate for NOA 7_8, which has been updated after extensive verification, infill and extensional drill programs were completed by Monument in FY15 and FY16.