MACPHERSONS RESOURCES LTD ASX Code: MRP
Contact Details
PO Box 10977
109 Maritana Street
Kalgoorlie WA 6430
T +61 (0) 8 9068 1300
F +61 (0) 8 9068 1310
E info@mrpresources.com.au
ABN 98 139 357 967
Board of Directors & Senior Management
Ashok Parekh
Non-Executive Chairman
Jeff Williams
Non-Executive Director
Peter Rozenauers
Non-Executive Director
Brendan James
Chief Executive Officer
ASX Announcement 16 November 2015
MacPhersons Resources Ltd (MRP) Board agrees to immediately initiate Boorara Gold Project Stage-1 Bankable Feasibility Study (BFS).
The Boorara Gold Project Stage 1 BFS is based on near surface open- cut mining producing 3.0-3.5 Mt Ore @ 1.01 g/t Au producing circa 86,000-91,000 ounces of gold over 3 years from a standalone Heap- Leach Merrill Crowe production facility.
Boorara Gold Project Stage 1 situated on granted mining leases with many statutory approvals and permits already granted which shortens the timeline to potential gold production.
The BFS is expected to be completed for under A$2 million, taking 6 months to complete including all MRP operational and administration expenses.
The BFS will be fully funded from the company's strong existing cash position.
Anticipated capital cost for the Boorara Gold Project Stage 1 are less than $20 million, by utilising substantial existing infrastructure at Nimbus, and the proximity to the City of Kalgoorlie Boulder.
Figure 1: Stoneville water bore drilling.
OverviewMacPhersons Resources Limited (ASX: MRP) is pleased to report that a decision has been made to progress the Boorara Gold Project Stage 1 to a Bankable Feasibility Study (BFS). The study will be based on an open pit mining operation producing 3.0-3.5 million tonne of ore grading 1.01 g/t Au recovering circa 86,000 to 91,000 ounces of gold via a standalone heap leach operation. This decision is in line with previous information released to the market regarding options for treatment of the Boorara Gold Deposit. Information relating to the Boorara Ore Reserves can be found in MRP ASX release dated 29 June 2015, 'Boorara-Nimbus Update- Continued Growth of Boorara Ore Reserves'. This previous ore reserve was based on an integrated Boorara Nimbus development model.
The anticipated capital cost for the Boorara Stage 1 project is expected to be less than $20 million based on utilising substantial existing infrastructure at Nimbus (1 km north east of Boorara), and proximity of the project to the nearby City of Kalgoorlie-Boulder.
Significant infrastructure capital cost saving will be made using the existing Nimbus office complex, the previously purchased Merrill Crowe plant, mains power line to Nimbus, Chappell Bore water supply and existing road access.
The Boorara project is situated 20.5 km east of Kalgoorlie-Boulder by road which also offers significant benefits and cost savings in regard to close proximity to a stable workforce and service industries.
The BFS is expected to take six (6) months to complete and budgeted cost is less than $2 million which includes ongoing routine operating costs of MRP.
Statutory permits and approvals that have already been granted relating to the Boorara Stage 1 project include;
WA Department of Mines and Petroleum - Boorara Mining Proposal
WA Department of Mines and Petroleum - clearing permits covering the Boorara Project
WA Department of Mines and Petroleum - consent to mine on Boorara Townsite and associated reserves
City of Kalgoorlie-Boulder- consent to mine on Boorara Townsite and associated reserves
WA Department of Water- licence to take groundwater from Chappell Bore and Golden Ridge open pit
WA Department of Water - licence to construct or alter a well at Stoneville
The Boorara heap leach BFS will incorporate the MRP owned Merrill Crowe plant components into the heap leach design. These components are now being prepared ahead of transportation to Kalgoorlie in the following months. FLSmidth the manufacturer of the Merrill Crowe plant has been contracted to transport the Merrill Crowe components and a final delivery date is expected shortly.
First stage drilling at the Stoneville prospect, investigating additional potential process water sources, has confirmed the presence of water bearing paleochannel sands. Drilling is currently underway to install a bore and undertake initial airlift bore flow rate tests using drill rig air. Pump testing will be required to determine actual bore production rates and aquifer draw down levels.
The studies of the standalone heap-leach Merrill Crowe production facility referred to in this report are based on low level technical and economic assessments and are insufficient to support estimation of an Ore Reserve specifically in relation to that production option, or to provide assurance of an economic development case or to provide certainty that the conclusions of the studies will be realised.
Northern Stockwork
Crown Jewel
Southern Stockwork
Figure 2: Boorara pit designs
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