Bardoc Gold optimisation study indidcates potential to increase production in the first five years

Bardoc Gold Ltd (ASX:BDC) has initiated a cash-flow optimisation study on improving the already robust Definitive Feasibility Study (DFS) for its flagship three-million-ounce Bardoc Gold Project, situated 40 kilometres north of Kalgoorlie in Western Australia. The company’s study was aimed at increasing the forecast gold production rate, margins, and free cash flow during the first five years of its operations at Bardoc Gold Project. Encouragingly, preliminary analysis conducted by the Bardoc indicates that there is strong potential to increase total ounce production in the first five years by bringing forward production from its cornerstone Aphrodite Deposit in the mine schedule. “Operational plan is significantly de-risked” Bardoc CEO Robert Ryan said: “The benefits of the new strategy had become apparent during ongoing optimisation of the 2021 DFS, engagement with EPC contractors and as a result of recent exploration success. “The revised mine plan allows us to bring forward ounce production in the mine plan and allow for sustained production from both underground mines concurrently. “This enhances project economics, which will allow the Company to repay debt earlier and expedite returns to shareholders. “The operational plan is significantly de-risked, with the establishment of the flotation circuit at the initial construction stage. “This allows for earlier production from our highest value deposits at Aphrodite, while also opening up the opportunity to exploit the exciting new discoveries we have made at Omega, Gamma and Sigma. “We’re looking forward to providing further updates on the project in the coming weeks as we close-in on project financing and a Final Investment Decision before the end of the year.” Additional high-grade ounces As part of Bardoc’s strategy, the proposed 2.1 million tonnes per annum processing facility would be situated at the company’s Aphrodite deposit. This provides the opportunity to extract further value from the 1.6-million-ounce Aphrodite Project and, in the future, from the highly prospective Omega, Sigma and Gamma Lodes, where recent exploration success has highlighted the strong potential for significant resource growth. Bardoc’s analysis suggests that the additional upfront capital expenditure required to bring forward the construction of the flotation circuit required to treat baseload ore from the Aphrodite Deposit is partially offset by other infrastructure cost reductions. Notably, the additional high-grade ounces will provide strong free cash flow in the first five years of the mine plan. EPC tender negotiations Bardoc is presently conducting Engineering, Procurement and Construction (EPC) tender negotiations and is close to finalising the construction of the 2.1 million tonnes per annum gold processing plant. In addition, diamond core drilling is underway at the Zoroastrian deposit targeting untested areas as well as depth extensions. Bardoc’s project development update is expected by end of August 2021, which will outline in detail the benefits of the increased production on all-in costs and free cash flow generation and refine the upfront capital requirement, paving the way for project financing and a final investment decision. - Ephrems Joseph