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Bardoc Gold Project PFS

Reserve: Mine Life:
10.4mt @ 2.4 g/t for 7 years
789,000oz gold AISC:
Capex: $1,220/oz
$142m NPV:
Throughput: $332m
1.8 mtpa IRR:
Production: 32%
135,000 ozpa

gold-in-concentrate and the payables we
have been quoted by traders are exception-
al,” he said. “It doesn’t make sense to build a
high capex plant at the front of the project’s
Bardoc aims to rewrite life when you can ship a gold concentrate
offshore and get high payables at recover-
ies as good as through a normal plant. The
option is a bit of a no-brainer and the more
recent history we progressed it over the last 12 months
the better the metrics have become.”
Ryan said the gold-in-concentrate mar-
ket was growing in China, Japan, Korea
and India with the likes of Evolution Mining
Ltd (at Mt Carlton) and Mandalay Resourc-
es Ltd (at Costerfield) shipping concentrate
ardoc Gold Ltd has moved swiftly to source at Excelsior open pit, we currently to China.
Blay the ghosts of the past to rest on its quote 330,000oz. So, we’ve built that con- To solidify its concentrate potential, Bar-
namesake gold project with a robust PFS servatism into our models. We know the doc will undertake further metallurgical test-
full of conservative numbers and plenty of likelihood of those models performing is go- ing throughout 2020.
upside. ing to be exceptional and more than likely “We want to look at more test work, pro-
The PFS was based on underground and we will see an over-reconciliation of ounces duce 50-100kg of gold-in-concentrate and
open pit mining across three centres – Aph- once we go into production,” he said. market that through various traders to get
rodite, Excelsior and Zoroastrian – 40km Bardoc has already proved 80% of the the best terms for our shareholders on an
north of Kalgoorlie. The three deposits were mine plan up to the indicated category but offtake agreement,” Ryan said.
consolidated under the Bardoc banner after Ryan said drilling would continue through On financing the $142 million project,
a series of mergers in 2017 and 2018. 2020 in an effort to convert as much of the Ryan is confident the company’s relation-
Bardoc announced the PFS results in underground ounces as possible into indi- ship with Burnvoir Corporate Finance will
early April and will now head into DFS work cated resources and probable reserves. pave a smooth path to funding.
with chief executive Robert Ryan pointing to “That will translate into the strength of the “We engaged Burnvoir who have speci-
a cautious gold price assumption of $2,100/ project in the longer term,” he said. ality in debt and equity financing and they
oz (currently $2,700/oz) and a 10.43mt @ In April, the company announced infill did a lot of work with our board when they
2.4 g/t for 789,000oz probable reserve. drilling results from the Aphrodite deposit. were involved with Pilbara Minerals,” he
The company’s predecessor Excelsior Hits of 22.6m @ 44.54 g/t from 202m, said. “They raised $400 million for Pilgan-
Gold had come unstuck due to grade rec- 18.1m @ 5.05 g/t from 322m, 6.9m @ 4.72 goora, we have a capital requirement of
onciliation issues, a common occurrence g/t from 107m and 7.1m @ 5.12 g/t from $142 million and xo we are very confident in
in the recent history of the West Austral- 203m conformed to model grades and that 60/40 ratio in being able to get finance,
ian junior gold sector. Ryan is determined widths in the 1.68 moz gold deposit. particularly given the amount of indicated
to ensure Bardoc doesn’t fall at the same While mining is set to occur along con- resources and reserves we have.”
hurdle as so many others. ventional Eastern Goldfields lines, Bardoc While Ryan has the company fully fo-
“We’ve learnt from the mistake of oth- is deviating from the norm in production. cused on the Bardoc DFS, he is also keep-
ers and the history of the company,” he While it will make use of a standard CIL and ing an eye on corporate developments
told Paydirt. “Excelsior had a few issues flotation plant, it has chosen to pursue gold around Kalgoorlie.
around mining and reconciliation of the ore dore and gold-in-concentrate production “The one thing we want to focus on is our
zones, which is quite common in the indus- over traditional gold. strong project and our ability to continue
try. A lot of that has to do with being too ag- Ryan said company investigations into developing,” he said. “But, Kalgoorlie has a
gressive in the geological modelling. the burgeoning gold-in-concentrate market lot of small landholders so there is an op-
“When I came in, I looked at the technical made it an obvious fit for Bardoc’s refrac- portunity to target smaller producers that
detail of the project. One of the big things tory material. have small resources which may add value
we now point to is that Excelsior used to “There is a big hole in the market where to Bardoc itself.”
quote about 470,000oz as an open pit re- people are seeing extreme value by selling – Dominic Piper

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