GOLD BULL RESOURCES CORP. The modifications provided include the addition of post-tax financial analysis (previously only pre-tax was reported) and the addition of an independent metallurgical qualified person review, which resulted in the previously assumed recoveries increasing from 70% to 75% with multi-phase crushing.
The Sandman Scoping Phase 2 Study has identified a stand-alone, low pre-production capital
The Scoping Phase 2 Study focused on mining gold mineralized material within optimized pit shells in two phases: Phase 1 mines all mineralized material within the pit shell above the water table and is dry (refer Phase 1 Study-1), followed by Phase 2 which is focused on mineralized material below the water table and within the pit shell, and is wet, after completion of additional monitoring, permitting and dewatering efforts paid for by mine cashflow from Phase 1.
The Phase 1 and Phase 2 approach is designed to preserve initial pre-production capital during the Phase 1 mining process. The benefit of this two-phase approach, is to enable further definition of the existing Mineral Resources, discover additional Mineral Resources, and enable sufficient time to conduct the below water table mine studies and permitting, all paid from the Phase 1 revenues. The proposed model has the potential to deliver strong organic growth with minimal initial dilution to existing shareholders.
THE STUDY HIGHLIGHTS
Production rate average of 2.2 Mtpa for a 9-year operation
35,000-40,000 ounces of gold per annum produced from conventional heap leach, average 38,000 ounces per year
At
NPV 6%
Average grade 0.73g/t gold LOM low strip ratio of 2.2:1
Phase 1 Initial pre-production Capital
LOM Operating cost of
All in Sustaining Cost (AISC) of
This Scoping Phase 2 Study focused on the efficient extraction of all mineralized material within an optimized pit shell in a sequence that facilitates effective use of initial pre-production capital and a more rapid mine commissioning. This Scoping Phase 2 Study is a Preliminary Economic Assessment PEA (PEA), under NI 43-101 requirements.
Gold Bull CEO,
Sandman provides Gold Bull with a low-cost and moderate mine life start-up with the opportunity to grow the asset via additional exploration using mine revenues. This is a practical approach to epithermal gold mining and has historically produced longer life assets.
In our Phase 1 PEA we only examined the oxide material located above the water table (5yrs), to enable a rapid timeline for mine commissioning and limited the initial pre-production capital. This Phase 2 scoping study focussed on extending the mine life from 5 years to 9 years while utilizing mine cashflow for Phase 2 development. The intent is to be mining, developing, and discovering additional ounces at the project utilizing mining cashflow and avoid shareholder dilution. Excellent exploration potential exists at Sandman and not all deposits are closed off.
Three gold resources at Sandman remain open, therefore this PEA is the most conservative base case done using only our pit constrained ounces at a gold price of
(C) 2023 Electronic News Publishing, source
