In Big Springs, Anova has a high quality gold asset with a clear and rapid path to production. A key element is the low start-up capital of around US$2 million for the initial open cut phase, with ore being processed via a toll treatment agreement with the neighbouring Jerritt Canyon Mine. This obviates the need to build a treatment plant, which in addition to cutting costs, simplifies permitting and significantly reduces the time and risks to start-up. The low capital for the following underground stages will be able to be funded from cash flow. The proposed initial 3 year, 41,000ozpa operation has the potential to spin off significant cash, with which the Company plans to pay dividends. There is also excellent exploration and resource expansion potential – both in extensions to the current mineralisation, and also in the high quality exploration ground surrounding the Big Springs mining area. Big Springs, being located in the Carlin district, is in a world class gold producing area, with access to all support required for a new operation. Another key positive of the jurisdiction are costs – the US is, compared to Australia, a low cost operating environment. Download the report for more information.
Anova Metals Limited October Report 2014
Company
- Anova Metals LimitedASX: AWV