The internal rate of return of the venture is calculated to be 73%.
Annual earnings are put at $88.8 million (on an EBITDA basis), and free cashflow over the life-of-mine is expected to be $740 million.
The 2.5 million tonne per annum processing project is seen as producing at a rate of 100,000ozpa for just over 7 years (treating ore with an average feed grade of 1.3 grams per tonne gold), and then about 40,000oz per annum for three years (from low-grade stockpiles).
All-in sustaining costs are put at $1650/oz.
Astral said the company’s board is “supportive of progressing the project to a preliminary feasibility study, subject to ongoing funding”.
The Marc Ducler-led Astral had $4.3 million cash at the end of June and recently raised a further $4.6 million by issuing new shares priced at 6.5c.
Analysts at Argonaut Capital believe the “more likely” development scenario for this project will be via existing mills in the area as either a toll-treating arrangement or an outright buy-out.
