Scoping study shows 'compelling' preliminary development case for Independence gold project

He points out that the study outlines a conventional, low-capital heap-leach operation with strong projected returns with a base case post-tax net present value of about A$511-million, an estimated 64% internal rate of return and a rapid payback of about 1.4 years.

"Importantly, these outcomes use only a portion of the current mineral resource estimate and exclude both the substantially larger current epithermal resource and the high-grade skarn resource. This provides a strong foundation for the next phase of work, as we incorporate the current resource, advance technical studies and assess opportunities to further enhance the scale and value of the project,” Lindgren comments.

The project has a mineral resource estimate of 2.2-million ounces, comprising a one-million-ounce high-grade skarn resource and a 1.2-million-ounce gold-equivalent epithermal resource.

Black Bear notes that mining at Independence is expected to use conventional drill, blast, load and haul methods under a contract mining model.

Mineralised material will be processed at a nominal rate of 9 000 t/d through a two-stage crushing circuit, before conveyor stacking onto a conventional heap-leach pad. The study assumes overall recoveries of about 76% for gold and 27% for silver.

Subject to board approval, Black Bear plans to advance the project through updated mine planning, infill drilling, metallurgical and geotechnical testwork, environmental studies and permitting.

Black Bear stresses that the development concept remains preliminary and will require further metallurgical, geotechnical, hydrogeological, environmental and engineering work before advancing to a prefeasibility study.