LONDON (Alliance News) - Bezant Resources PLC Wednesday said an independent review of the historical conceptual study on its Mankayan copper-gold project in the Philippines has recommended two changes that could cut the costs of the project, and the company has commissioned a separate review to look for more cost savings.
The review was commissioned as part of the continuing talks about selling the project, or creating a joint venture to develop it.
In a statement, the copper-gold explorer operating in the Philippines and Argentina said its associate Crescent Mining and Development Corp had commissioned GHD Group to undertake a high level review of the technical and economic study completed previously by TWP Australia and Mining Plus in January 2011.
The scope was to review the project's conceptual design details and assumptions in the context of recent trends in porphyry copper/gold ore mining and processing, as well updating the capital and operating cost estimates to reflect current local costs in the Philippines and to incorporate likely opportunities for any improved design elements identified.
The key recommendations were a change to conveyor decline haulage, from vertical shaft ore haulage, and improved mine ventilation rather than building a refrigeration plant.
The potential capital expenditure savings could be 26% on capital infrastructure cost, 4% on the capital development costs over the estimated 42 year life of mine, and 19% on total infrastructure, equipment and mine development over the life of mine, the GHD review said. The potential operational cost savings comprise a 15% potential cut for both the total expected production cost for the life of the project and the operating cost per ore tonne produced.
Bezant said it has also separately commissioned Mining Plus to provide a supplementary review and update to its historic financial model, focusing on identifying other possible areas for achieving cost savings. It said it will update its financial model to incorporate the revised cost estimates and possible savings identified by GHD's report, as well as reflecting current metals prices.
Bezant re-started looking for a buyer or joint venture partner for Mankayan after Gold Fields in January decided not to exercise an exclusive option it had to buy the project.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Bezant Res (BZT)