Dateline fires up study of 1M-ounce US gold mine | Australian Markets

Dateline Resources’ share price soared 17 per cent in the present day to 0.07 cents on the company’s greatest share turnover in more than a 12 months because it shifted into high gear to launch a bankable feasibility study (BFS) at its Colosseum gold project in California.

The analysis work is aimed toward remodeling the 1.1-million-ounce deposit into a long-life, high-margin gold operation simply because the yellow metallic price smashes by way of the US$3400 (A$5355) per ounce mark.

The study will goal an bold blueprint designed to show the deposit into a severe cash-generating machine by utilizing an open pit mining state of affairs centered on the project’s north and south ore pipes. The plan is forecast to course of the ore at 2 million tonnes each year to pump out 75,000 ounces of gold per 12 months throughout an initial 8.5-year mine life.

The investigation is being performed by two heavyweights in mine development – Nevada-based Kappes, Cassiday & Associates and Australia’s Australian Mine Design & Development – and is set to reflect the open pit-only second state of affairs outlined in Dateline’s earlier scoping study.

Work in October final 12 months pencilled in a mouth-watering web current worth of US$235 million (A$365M) utilizing a 6.5 per cent low cost charge and based mostly on a conservative US$2200 (A$3400) per ounce gold price. Processing prices are anticipated to return in at a modest all-in sustaining stage of US$1490 (A$2313) per ounce.

Total capital expenditure for the mine is forecast to max out at $195M (A$300M) and may pay for itself in simply over three years.

With the gold price now more than 55 per cent greater than the scoping study quantity at an eye-watering $5355 per ounce, the company says the economics of Colosseum could possibly be set for a main re-rate. Management is now trying to develop the project’s footprint to increase its mine life.

The project already hosts a stable 27.1Mt useful resource grading 1.26 grams per tonne (g/t) for the 1.1M ounces of gold, with 455,000 ounces grading 1.47g/t within the measured class. An extra 281,000 ounces operating at 1.21g/t sits within the indicated class.

Management says there’s more potential lurking at depth, with sniffs of mineralisation nonetheless lighting up beneath the present useful resource envelope.

Importantly, the bankable feasibility study is being performed completely within Dateline’s current mining rights and permitted operational plan, which can pace up the restart of the approvals course of.

If its remaining research stack up and finance falls into place, Dateline says it may have shovels-in-ground and be pouring first gold shortly after finishing its desktop work.

In a doubtlessly profitable twist, the company can be exploring the sale of waste rock and tailings as combination to native concrete producers. The area goes by way of a construction increase that would finally ship Dateline an extra income stream with none additional main capital expenditure.

Adding even more sizzle to the story is Colosseum’s intriguing, uncommon earths potential. The project lies much less than 10 kilometres from the well-known Mountain Pass mine, the one giant, uncommon earths operation within the United States. Dateline is already finding out carbonatite and mantle-derived rocks at Colosseum that bear similarities to Mountain Pass geology – hinting at a compelling vital minerals angle that would enhance the project’s strategic worth.

With gold flying high in a nation hungry for home mineral provide, Dateline’s Colosseum project may quickly step onto a a lot greater stage.

Is your ASX-listed company doing one thing fascinating? Contact: [email protected]