Golden eye on northern island after spot price surge
Ben McKay |
A surging gold price could return mining to the Torres Strait, with exploration firm Alice Queen taking a fresh look at its feasibility.
The company in 2021 assessed the value of gold deposits on Horn Island at $140 million based on a price of $2450 an ounce for the yellow metal.
With the spot price for gold now more than $6000 an ounce, Alice Queen is having a rethink with an updated study due in the first half of 2026.
The project was a “compelling opportunity”, managing director Andrew Buxton said.
“The company is continuing to review partnering opportunities, however is also now progressing a review of the economics of the 2021 Scoping Study in connection with exploring direct funding opportunities,” Alice Queen said in a statement to the ASX.
“With the current significant surge in gold price, the underlying value of the project is expected to increase substantially.”
The 2021 study included an average production rate of 37,000 ounces of gold annually and an 8.5-year mine lifespan.
It also proposed initial capital expenditure of $75 million with “all-in sustaining costs” of $1388 an ounce.
Alice Queen will also review the mineral resource estimate with mining consultant RSC, while GBA Capital will act as a strategic adviser for the project.
Horn Island, home to fewer than 1000 people, is among a clutch of islands between Queensland and Papua New Guinea that comprise the Torres Strait.
European settlers first mined for gold on Horn Island in the late 19th century, while a 1980s attempt to begin an open-pit operation lasted two years and required environmental remediation.
The announcement did not move the dial on Alice Queen’s trading price, which remained at $0.005 on Wednesday.
AAP
