The Mungana Gold Project covers two large gold-copper-silver resources, Red Dome and Mungana, in the Chillagoe region of North Queensland. Situated 3 kilometres apart, the porphyry-style deposits include combined Measured, Indicated and Inferred Resources of 131 million tonnes @ 0.64 grams per tonne of gold, 0.21% copper and 8 grams per tonne of silver.
Both resources have potential for large scale open pit and underground mining. This is being evaluated in detail through the final stage of a feasibility study now in progress, which is building on previous scoping and feasibility Stage 1 outcomes.
The base case configuration is for a 4 million tonnes per annum operation yielding 100,000 ounces of gold, 10,000 tonnes of copper and 1.5 million ounces of silver per year through copper concentrate and precious metals doré production.
Red Dome Pit Extension, being a large scale open pit redevelopment of the existing Red Dome pit, would form the base of the operation, contributing 3 million tonnes per annum over most of the 10 year project life. Supplementary production would come from open pit and underground mining at Mungana, and eventual underground mining at Red Dome. Metallurgical processing would comprise well proven, industry standard processes including crushing and grinding, flotation and carbon-in-leach circuits.
An advantage for the project is access to existing infrastructure. For mining, this includes the Mungana mine decline established by Kagara. Access roads to site are of good quality, an accommodation camp built by Kagara in the town of Chillagoe is available to be expanded, and the project is well served by other facilities in Chillagoe including an airport.
Environmental approvals for the project are expected by the end of 2013, with work in progress in support of these. A capable team of company people, together with consultants and specialist contractors are being assembled in readiness to transition the project through construction and development to production by late 2014.