Primary Gold up 25pc after getting the green light for Coolgardie project
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Primary Gold has been granted the final approval needed to start mining at its Coolgardie project in Western Australia.
Primary Gold’s (ASX:PGO) share price reached an intra-day high of 4.9c just after market open, a 25.6 per cent gain, before cooling slightly to 4.6c.
With the Western Australian government-issued approval now in hand, the company is on track to begin mining in the first quarter of this year.
“Having received full approvals to commence mining at our Coolgardie operations, we can now move on to next steps of setting up site for mining,” managing director Garry Mills said.
“A firm schedule can now be put in place for mining of first ore and hence timing of processing ore parcels to be scheduled for toll treating.”
A recently completed pre-feasibility confirmed the viability of a low-cost start-up gold mining operation based on mining three initial starter pits – MacPhersons, A-Cap and Tycho. Ore is expected to be treated at a nearby processing facility.
Cash flow is expected to come in at $16.9 million at a $1600 an ounce gold price with recovered gold of 65,000 ounces over an initial 28-month mine life.
Primary Gold is now finalising key contracts with Hampton Mining & Civil and Mining & Drilling Services.
Hampton Mining will be responsible for all drill and blast, excavation and haulage operations, while Mining and Drilling Services will undertake reverse circulation grade
Subiaco-based Primary Gold bought Coolgardie in October 2016 from MacPhersons Resources, which is focusing on its Nimbus project near Kalgoorlie.
On Tuesday, the company announced the departure of Marat Abzalov from his part time role as an executive director.