Santana Minerals Unveils A$780M NPV in Bendigo-Ophir PFS Update
Santana Minerals has released an updated Pre-Feasibility Study for its Bendigo-Ophir Gold Project, showcasing robust economics with a 13.8-year mine life and strong production profile. The study highlights significant capital efficiency improvements and a refined mining strategy.
- After-tax NPV6.5 of A$780 million at conservative gold price
- 13.8-year mine life with 1.25 million ounces gold production
- Reduced pre-production capital to A$277 million
- Selective staged open pit and underground mining approach
- Fast-track Approval application imminent with six-month permitting target
Robust Financial Metrics Highlight Project Viability
Santana Minerals Ltd has delivered an updated Pre-Feasibility Study (PFS) for its Bendigo-Ophir Gold Project in New Zealand, revealing compelling financial outcomes. At a conservative gold price of A$3,500 per ounce, the project boasts an after-tax net present value (NPV6.5) of A$780 million and an internal rate of return (IRR) of 39%. These figures improve markedly at current gold prices (~A$4,950/oz), with an NPV6.5 of A$1.52 billion and IRR of 65%, underscoring the project's strong economic fundamentals.
Optimized Mine Life and Production Profile
The study outlines a 13.8-year mine life producing approximately 1.25 million ounces of gold. Production is planned from both open pit and underground operations, with a peak annual output of around 120,000 ounces. The mining strategy has been refined to a selective staged approach, focusing on near-surface ore to reduce pre-strip volumes and capital intensity. This approach extends the mine life by four years compared to the previous study, while enabling earlier cash flow generation and a smoother operational ramp-up.
Downsized Processing Plant with Expansion Potential
The processing plant design has been revised from a 1.5Mtpa circuit to a 1.2Mtpa configuration featuring three-stage crushing and a single ball mill. This aligns better with the higher-grade ore feed and reduces capital and operating complexity. Importantly, the plant layout retains flexibility for future expansion to 1.8Mtpa, offering potential to accelerate production if market conditions warrant.
Capital Efficiency and Environmental Considerations
Pre-production capital requirements have been lowered to A$277 million, including a 10% contingency, reflecting the more selective mining approach and plant downsizing. The project incorporates comprehensive environmental, social, and governance (ESG) measures, including sourcing low-emission grid-connected hydroelectric power and implementing advanced water treatment and waste management systems. Extensive baseline environmental studies underpin the forthcoming Fast-track Approval application, which aims to streamline permitting.
Pathway to Development and Financing
Santana Minerals plans to submit its Fast-track Approval application imminently, targeting a permitting decision within six months. Concurrently, detailed engineering and financing discussions are progressing to align funding execution with approval timelines. The company is engaging multiple potential lenders and exploring alternative financing strategies, including equity and joint ventures, to support project execution. The coordinated approach aims to enable a seamless transition into construction and production by early 2026.
Bottom Line?
With strong economics and streamlined approvals on the horizon, Bendigo-Ophir is poised to advance rapidly, but financing and permitting remain critical hurdles.
Questions in the middle?
- Will Santana secure project financing on favourable terms to meet the aggressive development timeline?
- How will the inclusion of a minor proportion of Inferred Resources impact geological risk and production certainty?
- What are the potential implications of the new Fast-track Approval process on project permitting and community engagement?
