Saturn Metals Unveils Apollo Hill PFS: 1.59Moz Ore Reserve and A$973M NPV Spark Interest

Apollo Hill Project Overview

Saturn Metals Limited (ASX, STN) has announced a positive Pre-Feasibility Study (PFS) outcome for its 100%-owned Apollo Hill Gold Project, located near Leonora in Western Australia's Northern Goldfields. The study outlines a standalone, scalable bulk open pit mining operation with heap leach processing, targeting a 14-year mine life and a production target of 1.77 million ounces of gold.

Central to the PFS is the declaration of Apollo Hill’s maiden Ore Reserve of 1.59 million ounces, representing an 86% conversion of eligible Measured and Indicated Mineral Resources. This reserve underpins a robust mining production target and de-risks the project as it advances toward development.

Financial Highlights and Project Economics

The PFS financial model uses a conservative base case gold price of A$4,300 per ounce, generating a life-of-mine EBITDA of over A$2.5 billion, a net present value (NPV8%) of A$973 million, and an internal rate of return (IRR) of 51%. Capital payback is projected within 2.3 years of production commencement, supported by strong free cash flow averaging A$190 million annually over the first 12 years.

At current gold prices around A$6,200 per ounce, the project’s economics improve substantially, with EBITDA nearly doubling to A$4.9 billion, an NPV8% of A$2.38 billion, and an IRR exceeding 120%, with payback in just 1.3 years. These metrics highlight Apollo Hill’s resilience and potential profitability even under fluctuating market conditions.

Operational and Technical Details

The project plans a 10 million tonnes per annum heap leach processing facility, leveraging conventional crushing and agglomeration techniques optimized for Apollo Hill’s free-milling gold mineralization. Metallurgical test work supports an overall gold recovery of approximately 74%, with potential upside from finer crush sizes under further study.

Mining will be conducted via a large open pit with a low waste-to-ore ratio averaging 2.4, 1, employing large-scale excavators and 220-tonne haul trucks to achieve economies of scale. The mine design includes five stages to maintain steady production and efficient waste management.

Funding and Next Steps

Saturn Metals is well-positioned financially with A$60 million in cash, fully funding the project through the upcoming Definitive Feasibility Study (DFS) targeted for completion in late 2026. The total estimated funding requirement is approximately A$480 million, expected to be raised through a combination of debt and equity. The company’s strong institutional shareholder base and experienced management team underpin confidence in securing this funding.

Exploration momentum continues with multiple rigs active, focusing on resource infill and extensions, particularly along the high-grade Iris Trend. An updated Mineral Resource Estimate is anticipated in mid-2026, potentially extending mine life and enhancing project value.

Environmental and Social Considerations

Environmental baseline studies are well advanced, addressing flora, fauna, hydrology, and cultural heritage. Saturn maintains constructive engagement with the Wangkatja Tjungula Aboriginal Corporation RNTBC, the Native Title holders, and is progressing permitting activities in line with regulatory requirements. The project design incorporates flood protection and water management measures to mitigate environmental impacts, with no major impediments identified to date.