Minerals 260 has completed a Pre-Feasibility Study and declared a maiden Ore Reserve for its Bullabulling Gold Project, revealing robust economics and a pathway to production by late 2028.
- 2.5 million ounce maiden Ore Reserve at 0.86 g/t Au
- Pre-tax NPV5 of A$2.3 billion and IRR of 43%
- 5 Mtpa processing plant with potential expansion to 7.5 Mtpa
- 19-year mine life with average annual EBITDA of A$510 million
- Early construction underway funded by existing cash and Franco-Nevada
Strong Economics Back Bullabulling’s Development
Minerals 260 Limited (ASX:MI6) has unveiled a compelling Pre-Feasibility Study (PFS) for its 100%-owned Bullabulling Gold Project in Western Australia, confirming it as a high-margin, large-scale, long-life gold mine. The study reveals a post-tax net present value (NPV5) of A$2.3 billion, an internal rate of return (IRR) of 43%, and a swift two-year payback period, underpinned by an average annual EBITDA of A$510 million. Production is targeted to commence in the fourth quarter of 2028, with a 5 million tonnes per annum (Mtpa) processing plant designed to deliver approximately 150,000 ounces of gold annually over a 19-year mine life.
The maiden Ore Reserve estimate stands at 90 million tonnes grading 0.86 grams per tonne (g/t) gold for 2.5 million ounces, based on the December 2025 Mineral Resource Estimate (MRE) of 4.5 million ounces. Concurrently, Minerals 260 announced an updated MRE of 190 million tonnes at 1.0 g/t for 6.2 million ounces, which is expected to support an updated Ore Reserve in the Definitive Feasibility Study (DFS) due in early 2027.
Development Strategy and Early Works
The company is advancing a staged development approach, balancing capital efficiency and execution risk. The initial 5 Mtpa operation is capitalised at A$560 million for construction post-Final Investment Decision (FID), with an additional A$115 million earmarked for pre-production activities including mining and commissioning. Early construction works have already begun, focusing on the accommodation village and water infrastructure, funded by existing cash reserves and a A$220 million strategic funding package from Franco-Nevada, which also holds a royalty and equity stake.
Minerals 260 Managing Director Luke McFadyen highlighted the significance of the PFS outcomes, stating that Bullabulling’s economics “confirm the potential for this high-margin, large-scale, long-life Project” and expressed confidence in establishing the company as a mid-tier gold producer on the ASX.
Mining and Processing Details
The project will utilise conventional open pit mining methods with a life-of-mine strip ratio of 4.9:1 waste to ore. Mining will focus on three main areas: Phoenix/Bacchus, Kraken, and Dicksons, with the first nine years concentrated in the central Phoenix/Bacchus pit. Grade control drilling and blasting are planned with a 10m by 10m pattern, and ore will be mined selectively in 2.5m flitches to optimise recovery.
The processing plant features an industry-proven carbon-in-leach (CIL) flowsheet with a 75-micron grind size and an average gold recovery of 92% over the first 10 years. The design includes provisions for future expansion to 7.5 Mtpa, with space allowances for additional crushing, milling, and leach tanks. The tailings storage facility (TSF) is sized for life-of-mine deposition and designed with flexibility to accommodate potential throughput increases.
Infrastructure and Approvals Progress
Located 25km southwest of Coolgardie and 65km from Kalgoorlie, Bullabulling benefits from proximity to established infrastructure, including highways, airports, and regional workforce. The project area is covered by granted mining leases, facilitating a streamlined permitting pathway. Key approvals such as the Mining Development and Closure Proposal (MDCP) and Works Approvals are underway, with an accommodation village permit already granted and construction commenced under a fixed-price contract.
Water supply will be sourced from a combination of a regional palaeochannel borefield and a near-mine fractured rock borefield, both saline but suitable for processing and dust suppression. Power will be supplied via an off-grid hybrid system combining diesel, solar photovoltaic, and battery energy storage, with options for wind turbines in the future.
Exploration Upside and Future Growth
Minerals 260 controls a contiguous 1,160 km² tenement package, with ongoing drilling programs targeting resource extensions at depth and along strike. The updated July 2026 MRE reflects a 38% increase in contained gold compared to December 2025, with a significant uplift in Indicated Resources. This growth underpins the company’s confidence in expanding the Ore Reserve and supports the potential for future production growth beyond the current 5 Mtpa design.
However, the company cautions that any expansion beyond 5 Mtpa remains aspirational and subject to further technical and economic evaluation. The DFS, underway since May 2026 and expected to complete in Q1 2027, will provide updated resource and reserve estimates and inform the FID.
Bottom Line?
With early works underway and robust economics in hand, Minerals 260’s Bullabulling project is poised for a critical decision point in early 2027, but the path to expansion remains uncertain.
Questions in the middle?
- Will the Definitive Feasibility Study confirm the economic viability of expanding production beyond 5 Mtpa?
- How will fluctuations in gold prices and exchange rates impact the project’s financial metrics and investment decisions?
- What are the key risks in permitting and community engagement that could affect the project timeline?