The expansion will enable Perth-based resources company, Millennium Minerals Ltd, to process sulphide ore. This is a significant step towards Millennium becoming a +100,000 ounces per annum gold producer with a mine set for over five years’ worth of production value.
Millennium is now fully funded to execute the recently announced expansion of their processing plant at Nullagine Gold Project in Western Australia. The plant expansion is a central component of Millennium’s strategy to increase production at Nullagine.
Under the terms of the Risk Management Facility (RMF), Millennium will undertake a hedging program of at least 25,000 ounces over a rolling 12-month period from the date of first draw-down under the facility.
Chief Executive Peter Cash announced that ‘[Millennium Minerals] was delighted to have secured the support of a well-credentialed and high-quality finance partner in Investec to support the expansion of the Nullagine Gold Project”.
“Investec has financed numerous high-profile and successful Australian gold projects. Having them involved as we take this next step in our developments represents a big vote of confidence in the future of both Millennium and the Nullagine Project,” he said.
The company initially completed a sulphide ore expansion study last quarter, which confirmed that required capital expenditure (capex) to fund the plant modifications would cost around $40–60 million.
Having access to these facilities is set to continue growth within the company, push Millennium’s ‘aggressive ongoing exploration program’ and the development of Millennium’s new underground mine at Barton’s – this works in juxtaposition with the plant’s newly announced expansion.
“The relatively modest direct capital cost of the expansion – just $15 million – means that we can manage and control our funding requirements over the next 6-9 months, ensuring that Millennium can deliver this critical expansion program on time, while continuing to grow our Resource and Reserve inventory,” said Mr Cash on the subject.