Australian explorer Korab Resources plans to restart mining at the Bobrikovo gold project in the Ukraine this year after a definitive feasibility study indicated a profitable project with low start-up costs, the company said.
Korab is targeting a production of between 14,000oz and 16,500oz of gold in concentrate for a pre-tax profit of around $4m to $5.4m in 2011 and 2012.
Revenues from the initial phase will be used to expand the project’s processing plant capacity from to 300,000t a year from 120,000t and modify the processing circuit to improve gold recovery rate.
The capital costs of the project are expected to be between $2.2m and $2.8m and Lugansk Gold, Korab’s subsidiary and the owner of the project, is exploring various financial options.
Gold processing would begin by early 2011 and will initially process high grade ore with an average grade of 4.18 g/t, Korab said.