Antipa Minerals Ltd (ASX:AZY) has confirmed the “exceptional” development potential of the Minyari Dome Gold Project in Western Australia’s Paterson Province in an updated scoping study, reaffirming the technical and financial viability of a standalone gold mining and processing operation.
The study provides a preliminary evaluation of such a development, based on the recently updated September 2024 mineral resource estimate (MRE), which is expected to grow further with the ongoing Phase 2 drilling program.
“This updated scoping study has reaffirmed the technical robustness and commercial attractiveness of a standalone gold mining and processing operation at our flagship 100%-owned Minyari Dome Project,” Antipa managing director Roger Mason said.
The Minyari Dome Project is just 35 kilometres from Newmont’s Telfer gold-copper-silver mine and processing facility and 54 kilometres along strike from Greatland Gold-Newmont’s Havieron gold-copper development project.
Southern region of Antipa’s Minyari Dome (100%) Project and 35 kilometres from Newmont’s (soon to be Greatland Gold’s) Telfer gold-copper-silver mine and processing facility.
Scoping study highlights
The study outlines a forecast mine life of over 10 years, with total initial gold output of 1.3 million ounces, averaging 130,000 ounces per annum over the first 10 years, at a forecast average all-in-sustaining-cost (AISC) of A$1,721 per ounce.
The development would require a total pre-production capital cost of A$306 million, including A$90 million for pre-production mining.
It has an initial combined open pit and underground mine schedule of 30.2 million tonnes at 1.5 g/t gold for 1.5 million ounces of gold.
It outlined a pre-tax NPV7 of A$834 million and 52% IRR, assuming a US$2,100 per ounce gold price and 0.70 A$/US$ (A$3,000 per ounce); or a pre-tax NPV7 of A$1,696 million and 91% IRR assuming US$2,800 per ounce gold and 0.70 A$/US$ (A$4,000 per ounce).
Upside drivers
Strategically, Minyari Dome’s location — just 35 kilometres from Newmont’s (soon to be Greatland Gold’s), Telfer 22 million tonnes per annum processing facility — adds further optionality.
Antipa also notes the potential to further boost economics with resource upside and by-product opportunities.
“While the base case remains a stand-alone operation, as outlined in this scoping study update, we will naturally continue to assess in parallel any potential third-party pathways that may offer greater risk-weighted value for our shareholders,” said Mason.
Work ahead
“Over the past 18 months, Antipa has further unlocked the potential of Minyari Dome, delivering a 33% increase in the mineral resource estimate, along with a pipeline of new high-prospectivity gold-copper targets.
“With significant potential for further value to be added via success with the drill bit, we remain committed to a substantial exploration program through 2024 and 2025 across our 100%-owned Minyari Dome Project.”
Antipa recently commenced an aggressive 2024 Phase 2 drilling program at Minyari Dome that will run through to the end of the year. The company has multiple growth-focused drilling programs in planning for next year.