SXG has announced a gold production and consolidation strategy based on the establishment of a centrally located gold processing facility at the Marda Project where the bulk of its resource base is located.
A Feasibility Study is underway to define the gold production potential within the Company's portfolio of gold projects. This Feasibility Study assumes an integrated development of its portfolio of its gold deposits and prospects in the Marda region of Western Australia and is centred around the establishment of a modular 400,000tpa gold processing facility at Marda where the Company's resource base is centred.
It is anticipated that the production base load would comprise material mined from the four deposits (Python, Dugite, Dolly Pot and Goldstream) at Marda Central complemented by higher grade material from satellite deposits such as King Brown, Golden Orb and Battler. All deposits are located on granted Mining Leases.
The establishment of a central gold processing facility at Marda would also open up the Company's extensive exploration portfolio in the Marda region to focused exploration to provide additions to the base case production scenario.
Priority prospects considered to have the potential to deliver additional resources in the near term include Andromeda and Blue Peter, where significant gold mineralisation has already been intersected. The Company will also undertake a detailed study of the old Evanston mine to ascertain the potential for extensions to the deposit. The Company's extensive tenement holdings of approximately 4,000km² in the region has significant exploration upside and offers excellent potential for additional discoveries.
The Company is also pursuing opportunities to increase its resource base through acquisitions and consolidation in the region.
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