Black Bear Minerals Scoping Study Shows Strong Economics for Independence Gold Project

Strong Preliminary Economics from Partial Resource

Black Bear Minerals (ASX:BKB) has delivered a scoping study for its Independence Gold Project in Nevada that paints a compelling picture for a conventional, low-capital open-pit heap-leach operation. The study, based on just the 419,600-ounce AuEq portion of the near-surface epithermal resource, estimates a post-tax net present value (NPV₅) of approximately A$511 million, an internal rate of return (IRR) of 64%, and a payback period of roughly 1.4 years at a gold price of A$6,128 per ounce.

This production target covers 31.9 million tonnes grading 0.30 g/t gold and 6.09 g/t silver, with expected recovered output of 250,000 ounces of gold and 1.77 million ounces of silver over an almost 10-year mine life. Initial capital costs are estimated at around A$119 million, with an additional A$8 million earmarked for working capital and initial consumables.

Scope Limited to Epithermal Resource Portion

The scoping study notably excludes the substantially larger current epithermal mineral resource of 1.22 million ounces AuEq and the high-grade skarn resource, which together expand the total Independence Project resource base to over 2.2 million ounces AuEq. Black Bear plans to update the study to incorporate these components, alongside infill drilling and metallurgical test work, potentially unlocking further value.

CEO Dennis Lindgren emphasised that the study "utilises only a portion of the current MRE and excludes both the substantially larger current epithermal resource and the high-grade skarn resource," underscoring the potential upside in the project’s economics as the full resource is integrated.

Conventional Mining and Processing Approach

The proposed development involves conventional contract-mined open pits with a nominal throughput of 9,000 tonnes per day. Ore would undergo two-stage crushing before being stacked on a heap-leach pad, where dilute cyanide solution extracts the gold and silver. Recovery rates are assumed at 76% for gold and 27% for silver, with a Merrill-Crowe plant onsite to recover precious metals and produce dore bars.

Mining is scheduled to commence in the South Pit, initially supported by 92% Indicated Mineral Resources in Year 1, ensuring geological confidence in the early years. The strip ratio is modest at 1.20:1, reflecting a relatively low waste-to-ore movement ratio.

Cost Structure and Capital Requirements

The all-in sustaining cost (AISC) is estimated at approximately A$2,248 per ounce of payable gold, net of silver by-product credits. Operating costs average A$22 per tonne processed, split between mining, processing, and site administration. Life-of-mine sustaining capital is forecast at around A$10 million, with closure and reclamation costs estimated at A$14 million.

Black Bear’s current cash position stands at approximately A$5.17 million, which will fund the next phase of technical and permitting work. However, the company acknowledges that pre-production funding of about A$127 million will be necessary to advance the project to construction, with no funding arrangements secured to date.

Permitting and Project Risks

The Independence Project will require multiple federal and state permits, including a Bureau of Land Management Plan of Operations and environmental approvals. Baseline studies and permitting remain incomplete, posing potential timing and cost risks.

Key uncertainties flagged include metallurgical recovery assumptions, particularly for transitional material, the accuracy of capital and operating cost estimates (±30% and ±20%, respectively), and the proportion of Inferred Mineral Resources (27%) in the production target, which carry lower geological confidence.

Next Steps and Strategic Outlook

Black Bear plans to spend approximately A$6.2 million on infill drilling, metallurgical test work, geotechnical studies, environmental baseline work, and permitting to advance the project toward a Pre-Feasibility Study. The company is also investigating the high-grade skarn resource separately.

While the study’s robust preliminary economics provide a strong foundation, the path to development hinges on securing funding, completing permitting, and refining technical assumptions. The company’s broader portfolio includes the Shafter Silver Project in Texas, where recent drilling has extended silver mineralisation, and a lithium exploration portfolio in Quebec.

The Independence Gold Project’s proximity to Nevada Gold Mine’s Phoenix Project and location within a tier-1 mining jurisdiction add strategic appeal, but the scale-up from a partial resource to full project development remains a critical challenge ahead.