Shares in emerging miner Bullabulling Gold showed some signs of life on Tuesday after the company forecast strong financial performance for its Coolgardie project.
Bullabulling closed 11 per cent higher at 10 cents, finishing lower at 9 cents yesterday, after revealing a preliminary production schedule would recover 1.95Moz of gold from an initial mine life of 10 years.
Life of mine cash costs would average $1104/oz, according to the study.
However, in line with previous guidance, cash costs in early years are forecast to be materially lower, with 650,000oz expected to be produced in the first three years at cash costs of $884/oz.
“The prefeasibility study results reinforce the company’s view that the Bullabulling deposit can support a financially robust gold mine of substantial scale, ” managing director Brett Lambert said.
“Specific opportunities already identified to further enhance the project and the identified potential for resource growth provides additional encouragement.”