New Murchison Gold Limited (ASX:NMG) is pleased to announce the results of the Feasibility Study for its Crown Prince Gold Deposit in Western Australia, confirming a robust pre-tax cash flow of $226 million over 30 months at current spot gold prices (A$4,385/oz).
The study highlights the potential for rapid development, with first ore sales targeted for August 2025 and mining commencement expected in June 2025. Capital expenditure to begin production is just $5.4 million, significantly lower than comparable projects due to NMG’s Ore Purchase Agreement (OPA) with Westgold Resources Limited (ASX:WGX).
The feasibility study estimates an Ore Reserve of 0.89 million tonnes grading 4.8g/t gold, containing 140,000 ounces. All ore will be transported to Westgold’s Bluebird Mill for processing under the OPA, reducing infrastructure costs and fast-tracking production.
CEO Alex Passmore commented:
"The results of the Feasibility Study provide a sound basis for proceeding with the commencement of mining at Crown Prince. Feasibility work to expand the mineral resource, optimise the overall mine plan and derisk the project in 2024 has contributed to successful advancement of the project. Securing an Ore Purchase Agreement provides a solid basis for the project as little capital expenditure is required, and the path to production is significantly shortened."
The deposit’s high-grade Southeast Zone (SEZ) offers strong early cash flow, supporting NMG’s transition from explorer to producer. Additional exploration in 2025 will assess underground potential and adjacent deposits, including Lydia and New Murchison King.
