Millennium Minerals boosts Nullagine reserve 25% to 567,800 gold ounces Monday, November 29, 2010 by Proactive Investors With a 101,000 boost in contained gold ounces from recent optimisation studies, the Millennium Minerals (ASX: MOY) Nullagine Gold Project in the East Pilbara District has increased forecast annual gold production by 14,000 ounces to 72,000 ounces, with the mine life remaining at seven years and producing 505,000 ounces.
The company re-estimated the projects ore reserve due to the recently announced mineral resource inventory increase to: 34.4Mt at 1.13 g/t gold using a 0.5 g/t gold cut-off grade for 1.247m ounces for the five project areas, and due to the increasing gold price and the upward pressure on operating costs generally.
The project consists of five main deposit areas; Golden Eagle, All Nations, Barton, Golden Gate and Shearers, with Golden Eagle being the biggest and main economic driver of the project.
Proactiveinvestors recommends Rey Resources readies for major milestones developing Canning Basin thermal coal project Gold One International gold production to hit 120,000 ounces in 2011, earnings of US$59 millionYTC Resources drilling hits more high grade copper beneath Nymagee MineGolden Eagle is located approximately 10 km south of the township of Nullagine, and contains 63% of the total gold resource inventory.
Millennium now plans to complete order specification and documentation for long lead items such as the SAG mill, camp and telecommunications infrastructure, with the earliest completion of the development phase currently targeting the first quarter of 2012.
Auralia Mining Consulting was commissioned to conduct the Ore Reserve study, with operating cost assumptions from recent preferred supplier tendering for mining fleet, drill and blast and consumables.
Labour costs were updated based on October 2010 remuneration surveys, with other design parameters for the study, such as pit slope angles, discount rates and milling limits, taken from the previously completed 2009 feasibility study.
A gold price of A$1,275 per gold ounce was used for pit the optimisation.
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With a gold production boost forecast to reach 72,000 annually at the Nullagine Gold Project, Millennium will have an increase in short term cash flows to help fund the planned development phase. |