OzAurum Resources has acquired a key heap leach agglomeration plant, significantly reducing development risks and capital costs for its Mulgabbie North Gold Project. This strategic move positions the company to fast-track feasibility and production amid strong gold prices.
- Acquisition of 100% ownership of a proven heap leach agglomeration plant
- Plant designed by Kappes Cassidy & Associates with strong WA operating history
- Capacity of 100 tonnes per hour, scalable to 350,000 tonnes per annum
- Low upfront capital cost through favourable acquisition terms and in-house refurbishment
- Advances Mulgabbie North feasibility study and development timeline
Strategic Infrastructure Acquisition
OzAurum Resources Ltd (ASX – OZM) has taken a decisive step forward in developing its Mulgabbie North Gold Project by securing full ownership of a heap leach agglomeration process plant. This acquisition removes a significant hurdle in the project’s development pathway, materially de-risking the venture and enhancing its economic prospects.
The plant, originally designed by internationally recognised heap leach specialists Kappes Cassidy & Associates, boasts a proven track record across several successful Western Australian operations, including Marvel Loch Gold, Nifty Copper, and Bullabulling Gold projects. Its pedigree offers OzAurum a high degree of technical confidence in its performance.
Capacity and Scalability
Designed to operate at 100 tonnes per hour, the plant aligns perfectly with the proposed Stage 1 development of Mulgabbie North. Moreover, it offers scalability to support Stages 2 and 3, potentially processing up to 350,000 tonnes annually on day-shift operations. This flexibility is critical for a project aiming to grow production efficiently without the need for immediate large capital outlays.
Cost-Effective Development Pathway
One of the standout features of this acquisition is the low upfront capital cost. OzAurum secured the plant under favourable terms for just $20,000, a fraction of what a new build would require. The company plans to relocate the plant a short 30 kilometres to its Coolgardie industrial workshop for refurbishment. By leveraging in-house expertise and local contractors, OzAurum aims to tightly control refurbishment costs, timelines, and quality, further enhancing project economics.
Technical Confidence and Market Timing
The plant’s technical suitability is reinforced by metallurgical data from comparable ore types, which have demonstrated gold recoveries between 80% and 90% in prior heap leach operations. This bodes well for the Mulgabbie North ores and supports the company’s confidence in achieving strong recoveries.
With the Australian gold price hovering around A$6,800 per ounce, OzAurum is well positioned to capitalise on favourable market conditions. The acquisition accelerates the feasibility study and development timeline, potentially enabling the company to bring the project into production sooner.
Looking Ahead
CEO and Managing Director Andrew Pumphrey highlighted the strategic advantage of acquiring a well-maintained, purpose-built plant close to the company’s refurbishment facilities. This move not only strengthens project economics but also enhances shareholder value by reducing development risk and expediting progress toward production.
As OzAurum advances the Mulgabbie North feasibility study, the market will be watching closely to see how quickly the company can translate this infrastructure acquisition into operational milestones and ultimately, gold production.
Bottom Line?
OzAurum’s low-cost acquisition of proven processing infrastructure sets a solid foundation for advancing Mulgabbie North amid strong gold prices.
Questions in the middle?
- When will the refurbished plant be commissioned and operational at Mulgabbie North?
- What are the expected capital and operating costs following refurbishment?
- How will the upcoming feasibility study impact the project’s timeline and scale?