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MINING |Explaurum
Turning the Tampia Gold Project into a new gold district in Western Australia
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EXPLAURUM
MINING |Explaurum
ASX-listed Explaurum is a gold mining company focused on the development of the Tampia Gold Project and exploration of the surrounding region. Tampia is located approximately 240 km East of Perth in the wheat belt of Western Australia, near the township of Narembeen. It was discovered in 1987 by BHP’s now-defunct gold exploration branch, who established high grade gold mineralisation near surface. Explaurum took an 80% interest in the project back in 2012, which has since increased to 90% while the company has worked on updating the mineral resource. After revealing a host of positive project metrics in a November 2017 scoping study, Explaurum has further improved the mineral resource at Tampia in a long-awaited feasibility study, published in May.
produce around 490,000 oz of gold over a 5.3 years initial mine life.
Robust results
This impressive production figure is
The feasibility study for the Tampia project
supported by a low initial capital cost (CAPEX)
revealed an updated mineral resource of
estimate of AUS$119 million, along with an
675,000 oz of gold from 11.7 Mt at a grading
all-in sustaining cost (AISC) of $896 per oz for
of 1.79 g/t Au, with an initial mine plan of
the first two years and $998 per oz for the life
534,000 oz Au from 8.0 Mt at a grading of
of mine.
2.07 g/t Au. From this, Explaurum expects to
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“It’s a very robust project,” says Explaurum’s
was undertaken by consultancy groups that
managing director and chief executive officer
assisted in the production of the feasibility.
John Lawton “With a payback period of 1.5
The company is currently reviewing this and
years and lowest quartile cash and AISC.”
hopes to post an update in due course.
However, the net present value (NPV)
Nonetheless, when looking at the profitability
decreased from AUS$181 million to
margins outlined in the study, it becomes
AUS$125 million which Lawton believes is
clear that the open pit mine qualifies as a low
a result of the modelling process for the
cost, high margin, high return project that
resource estimate and ore reserve, which
would also be resilient to any downwards
MINING |Explaurum
movement in the gold price.
fundamental building blocks for a mining project were missing, with previous
“The cash operating costs are in the lowest
development progression handicapped by
quartile for gold production, so I think it’s fair
limited understanding of the underlying
to call Tampia a low-cost operation. The gold
geology.
price is currently about AUS$1,650 per ounce and we are looking at a production AISC of
But, over the last six years Explaurum
just under AUS$1,000 which provides an
has negotiated a land access agreement
attractive margin,� Lawton posits.
where before there was none and strongly
Unlocking the Tampia resource When Explaurum acquired the Tampia project back in 2012, a number of
enhanced understanding of the geology at Tampia through detailed gravity survey work, along with advancing the project to feasibility and optimising the mineral resource.
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In fact, the company’s increased
“The main reason for this was a lack of
understanding of the regional geology has
understanding on the geology of the deposit,
led to a significant focus on near-mine
which is located within an area of cultivation
exploration in recent years with promising
and therefore has poor exposure. We’ve
initial results from ground and airborne
come to grips with understanding the
surveys contributing to a growing optimism
geology and since applied that to the region
that the company could be sitting on a new
and found more greenstone belts and other
goldfield.
gold targets.”
“There has been very little exploration
A new gold province?
around Tampia since BHP made the original
The discoveries began in April 2016, when
discovery after following up of a regional
one of Explaurum’s ground gravity surveys
stream geochemical anomaly located gold
identified a bullseye anomaly coincident with
mineralisation at surface.
the known Tampia deposit. This was followed
MINING |Explaurum
one year later by a 400 km2 airborne gravity and magnetic survey of the district, which identified three major new targets and 21 secondary targets. In a mid-2018 update to the ASX, Explaurum confirmed some exciting results from an RC drilling campaign which tested soil gold and gravity targets in an area to the North of the Tampia deposit. The drills intersected four anomalous zones of gold over an area of 3.5
“It’s a gravity target that has a similar
km x 1.5 km.
geophysical signature to the Tampia deposit. Follow up auger soil sampling indicates
“It’s a very exciting area that is more than
the target is highly anomalous in gold with
four times larger than the area of the known
soil values up to 0.8 g/t Au, which is a very
Tampia deposit,” reveals Lawton.
exciting exploration target.”
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area, which would effectively add mine life to the Tampia project. More recently, Explaurum announced the discovery of supergene gold mineralisation (Mace prospect) immediately West of the Explaurum has completed soil sampling in
known Tampia resource which extends
the area for the immediate period and will
over a length of 550 metres and a width of
continue drill testing a target that has been
50 metres, having an average thickness of
christened Anomaly 8 over the next quarter.
approximately 5 metres and uncut average
The intention is to identify a resource in this
grade of 5 g/t Au.
MINING |Explaurum
The mineralisation, which is continuous and
“We have the exploration tools that can track
occurs at a consistent depth of 8 metres
these things down quickly and cheaply. From
below surface, is open to the West and
an exploration point of view, we are in a very
associated with a gold soil anomaly that
good place and hope to add resources to the
extends for some 13 km. Assessment of
project.”
Mace has been given priority so it can be incorporated in the bankable feasibility study.
Timeline to production Now that the feasibility has been ticked off,
When factoring in these potential regional
Explaurum is marching towards a bankable
growth opportunities, Explaurum has an
feasibility study which should be delivered
excellent chance to significantly build the
in October. Lawton confirms that the project
Tampia resource while opening up a newly
has already generated attention from banks
emerging gold province in Western Australia
and potential financiers and the company has
with outstanding repeat potential.
begun talks with these interested parties.
“We can only report the results as we get
In the lead up to the bankable feasibility,
them, but the exploration results to date
Explaurum will complete an infill drilling
are very exciting. We certainly think there is
programme at Tampia. Up until now all
significant potential, even though it’s an area
drilling at the resource has been done on
that’s never been explored before.
a 40 metres by 40 metres grid, but the company is currently infill drilling part of the
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resource area on a grade control basis at a
Tampia will be commissioned and in
spacing of 10 metres by 10 metres.
operation by early 2020.
“This campaign will de-risk the project for
To conclude, Explaurum’s near-term focus
the financiers. It’s only for a portion of the
is twofold: “One is getting into production
resource area but it’s within the pit designs
quickly. The Tampia resource is where gold
and will be effectively grade control drilling
was discovered in the region, but it’s a small
of that area. I expect that infill drilling will
area. We are talking about a single pit that is
provide a confirmation of the resource, if not
roughly 1,000 metres long and 400 metres
an upgrade,” says a confident Lawton.
wide.
Explaurum is also talking to engineering
“That’s been the basis of the feasibility study,
companies with regards to the construction
but at the same time we don’t intend to lose
of the facility, which all things considered,
momentum on the exploration front in the
should by tied up by the end of the year.
region and we will be developing additional
Although the firm cannot give a detailed
resources as feed into the operation.”
timeline at this stage, Lawton hopes that
ASX:EXU
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Published by Anderson Murray Media Ltd
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