The key outcomes of Explaurum Ltd’s updated Tampia feasibility study incorporate further metallurgical test work, mine design and scheduling together with refined capital and operating cost estimates. The updated study also includes the addition of the Mace supergene deposit.

• Pre-tax NPV of approx. A$156 million (up from A$125 million) and pre-tax IRR of about 70% (up from 47%)
• Estimated average C1 operating cost of A$825/oz (down from A$885/oz) and all-in-sustaining-cost (AISC) of A$917/oz (down from A$998/oz)
• Initial capital expenditure to commercial production of approx. A$111 million (down from A$119 million).

Summary of key changes from May 2018 feasibility study

• Initial capital cost of standalone process plant subjected to competitive tender process
• Flotation circuit and ultra fine grind (UFG) circuit construction deferred for approximately 15 months after commencement of operations
• Mine design and mine scheduling optimised, resulting in improved gold recovery during first two years of operations
• Mace supergene gold Mineral Resource estimate incorporated in mine plan, not requiring additional development capital.

Commenting on the results of the updated study, Explaurum Managing Director, John Lawton, said: “Explaurum undertook to provide shareholders with critical Tampia project information in order to enable a balanced evaluation of the company within the context of the current Ramelius takeover offer. This updated Tampia feasibility study delivers on this commitment and details new and relevant information not previously assessed in the Independent Expert’s Report prepared by BDO.

“The updated Feasibility Study confirms that Tampia is a technically sound and robust project with forecast annual production in excess of 100,000 oz of gold, at an all-in-sustaining-cost averaging A$917/oz. This places Tampia in the lowest cost quartile of gold projects globally. It also generates an outstanding margin of over A$800/oz at current spot gold prices, which are trading at A$75/oz higher than the gold price used in the updated feasibility study.

“We have commenced targeting extensions to the Mace resource, which are planned to be drilled aggressively over the upcoming summer period. This will be coupled with advancing exploration at the highly prospective A8 target to the north.”

Explaurum is an Australian-based gold exploration company focused on the exploration and development of the Tampia gold project. Located 240 km east of Perth in the wheatbelt of Western Australia near the township of Narembeen, the prospect was discovered in 1987 and an Inferred Resource of 324,000oz gold estimated in 2000.

Following the acquisition of Tampia in September 2015, Explaurum has carried out extensive exploration and results to date have substantially increased the project’s resource / reserves which now stand at:

•Mineral Resource of 675,000 oz gold from 11.7 Mt grading 1.79 g/t Au
•Initial Ore Reserve of 485,000 oz gold from 7.2 Mt grading 2.09 g/t Au.