Good report for potential Hera mine
Wednesday September 23, 2009
A new report from a Western Australian mining consultant company has supported plans for a full scale mining operation at Nymagee.
YTC Resources, which this week officially took over the ownership of Nymagee’s Hera project, recently engaged the services of Hartleys Limited as part of its feasibility studies into the gold deposit.
The company hopes to shortly complete its final feasibility study with a view to commencing production from early 2011.
“The company [YTC Resources] is looking at a range of different treatment options, including toll treatment of the ore at the nearby Endeavor Mine plant, or building a stand-alone plant on site,” the Hartley’s report said.
Using YTC’s ‘base case’, Hera is expected to yield 200kt per annum over 5.75years with an average annual revenue of A$67M (based on Hartleys commodity price assumptions).
Approximately 69 per cent of the revenue will come from gold sales, lead (nine per cent), zinc (18 per cent) while copper and silver will each contribute two per cent of revenue.
The Hartleys report concluded the mine has “good potential to either expand mine life or increase production rates via the development of other lodes outside the Main Lens, as well as additional discoveries at depth or along strike”.
Hartleys estimates capital costs for plant and underground development to start up the mine could total $25million.
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