Saracen Mineral Holdings (ASX:SAR) has announced a 25% increase in the total resources at its Thunderbox mine in Western Australia. The total resources at the project now stand at 2 million ounces (of which 1.5 million ounces are in the indicated resource category) at 1.7 g/t.
Saracen is currently in the construction phase at Thunderbox and is still anticipating to start the production in the summer of 2016. As a brief reminder, Thunderbox should produce 125,000 ounces of gold per year at an all-in sustaining cost per ounce below A$1050/oz (around US$825/oz) so this should add quite a bit of cash flow to Saracen’s annual cash flow profile.
The increase in the overall and indicated resources should now allow Saracen to extend the mine life at Thunderbox to more than 10 years.
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Disclosure: The author holds no position in Saracen Mineral Holdings. Please see our disclaimer for current positions.
