Black Swan throughput increase likely to increase capital cost of plant conversion, Maritana Minerals says

A new study has identified the opportunity for a higher throughput at the Black Swan processing facility, which in turn would likely increase the capital cost of the nickel plant conversion, the company behind the project says.

Maritana Minerals told the Australian Securities Exchange on Tuesday a just-completed front-end engineering design study identified Black Swan could have throughput of 2.5 million tonnes per annum.

The company said this was an increase on the 2.2Mpta outlined in February’s scoping study that estimated Black Swan could produce 102,000 ounces of gold a year for five years.

Maritana said this boost would likely increase the capital cost of converting the nickel processing facility about 50km north-east of Kalgoorlie-Boulder.

The current estimate is $101 million, with another $75m for associated infrastructure.

Maritana had identified the nickel plant conversion as being cheaper than building a new gold processing facility, which it estimated would be more than $200m.

The company on Tuesday said the front-end engineering design study undertaken by GR Engineering Services had identified the throughput increase based on further assessment of ore sources and the capability of existing crushing and grinding infrastructure.

Maritana said this uplift could meaningfully enhance the project’s production capacity, subject to further technical and economic studies, and supported the company’s target of becoming a 100,000oz per annum producer.

The company said the capital cost implications of the throughput increase were currently being assessed as part of the ongoing front-end engineering design review process.

Maritana sad it would update the market in due course, including any revised capital estimates and the impact on the project’s mine plan.

The company said it was also reviewing all capital cost items to identify potential to reduce costs, defer expenditure beyond first gold production, and/or enter separate financing options for certain capital items.

Maritana said it had completed the design of an enlarged run-of-mine pad, with the expanded design accommodating ore delivery from quad side-tipping road trains and providing significantly increased stockpiling capacity to support ore blending and optimise mill feed.

The company said design of a permanent 60-room camp at Black Swan was under way, with a temporary camp to support construction until the permanent facility was operational.

Maritana said clearing and earthworks for the temporary camp were under way.

The company said it was also acquiring a property in central Kalgoorlie-Boulder with existing development approval for about 50 rooms, with settlement expected this month.

Maritana said this camp would support mining operations at its sites near Kalgoorlie-Boulder, reducing travel times.

The company said hotel accommodation in Kalgoorlie-Boulder had been secured in the interim for drilling and operational readiness activities.

Maritana said Black Swan was supported by sufficient grid power capacity and Western Power had started project studies for grid connection, with approvals expected in the coming quarter.

The company said the diesel backup power station design had been completed and right-sized to provide appropriate redundancy and operational resilience.

Maritana said it had engaged Western Groundwater and Flow Water Services to undertake water studies and support the refurbishment and construction of the project’s bore fields.

The company said it had appointed MineBuild Global to oversee the establishment and restart of the Boorara open pit, Coote and Crake open pits, and the development of the Cannon underground mine.

Maritana said these operations represented the first three key ore sources for Black Swan.

The company said key technical studies for mine readiness at these initial operations had been completed, while technical studies on the Burbanks open pit and underground operations were currently under way.

A final investment decision on Black Swan is imminent, with a 12-month construction phase expected, and first gold targeted for mid-next year.

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