A feasibility study for stage one of the Besra's Bau project in Sarawak, East Malaysia, has identified that the development may start production from late 2015.
With a capital investment of about $134.8m, the project could deliver 116,000oz of gold per year.
The company said that Bau is a historic goldfield, which was intermittently surface mined for the past 150 years, and production from the shallow pits is estimated to be around three million ounces.
Besra CEO John Seton said the release of the stage one feasibility study confirms the economic viability of the project.
"I'd also like to make it clear that this is only stage one of a sizable multi-mine project with significant potential for expansion for many years to come," Seton said.
"We have already commenced pre-feasibility studies on adjacent deposits that are expected to push mine life out to ten to 12 years."
"The 15km-long Bau goldfield is open along strike and at depth at almost every deposit."
Seton noted that Bau exploration remains at a relatively early stage, with deposits at various stages of development and many prospective zones as yet entirely unexplored.
The remainder of the goldfield features 36 prospects or known deposits, which are either at the inferred level or have a suitable geological potential, which requires follow-up work and exploration or resource drilling.
Besra stated that the goldfield also needs to be tested at depth below the deposits, to understand the significant depth potential in-line with the Carlin similarity model and concept.
Image: Bau goldfield extents with sectors and deposits. Photo: courtesy of Besra.