Echo Resources
WA-based junior Echo Resources is well-placed to begin operations at its Yandal project with key infrastructure already established, significantly reducing its timeline to production.
ECHO Resources is rapidly moving from explorer to developer at its 100 per cent owned Yandal gold project in the Eastern Goldfields, WA.
The project has existing mineral resources of 1.7 million ounces and ore reserves of 856,000 ounces, which Echo is confident it will continue to expand through the application of modern exploration techniques.
Echo chief executive Victor Rajasooriar said that the company was on track to complete Yandal’s revised Bankable Feasibility Study in the March quarter– which will dictate the project financing strategy.
“Depending on the outcomes of that study and our ongoing discussions with potential project financiers, the Echo board will then determine the pathway which will ultimately dictate the timeline,” Mr Rajasooriar said.
“But ultimately our intention is to take the project through development and into production as soon as it’s feasible to do so.”
The mine plan would see the company refurbish its nearby Bronzewing mining and processing facility, currently on care and maintenance, to aid in Yandal’s rapid transition into production.
The Bronzewing facility could process 2 million tonnes per annum, and studies undertaken by Echo demonstrated the facility could be refurbished for about $17 million.
“One of the clear advantages of our Yandal project is the amount of infrastructure we have already established on site around our Bronzewing processing hub,” Mr Rajasooriar said.
“We have an existing tailings dam facility which is capable of storing 17mt of tails (nearly 10-years of future production), an operating airstrip, 240-person camp, power, water and communications infrastructure, along with an extensive network of access and haulage roads.”
Mr Rajasooriar said the refurbishment of the processing plant would take up to six months to complete.
“We’ll make significant cost and time savings by using this existing infrastructure which, in turn, drives a low capital intensity and much faster payback period,” he said.
“This helps to lower the risk of the project and will free up funding faster so we can get on with the job of finding the next 1 million ounce deposits within our 1600sqkm land package.”
Mr Rajasooriar joined Echo’s executive team in November 2018 as a mining engineer with more than 20 years’ operational and technical experience, but he was humble regarding the influence of his appointment towards recent success.
“Echo was already well advanced with its Feasibility Study work and project financing for the Yandal project when I joined in November, so my role has really been in taking a leadership role in ensuring we deliver on the strategy set by the board,” he said.
“Echo has a strong team that’s been bolstered by the recent appointments of Richard Hill as chief financial officer, Wayne Foote as project manager and Travis Craig as general manager geology.”
Mr Hill was previously the chief financial officer at Egan Street Resources and brought experience with feasibility study completion, project construction and development, mine operation as well as corporate combination and integration activities.
“We feel we’re well placed now to transition the company through financing, construction and into production,” Mr Rajasooriar said.
2019 Outlook
While the focus remained on fast-tracking Yandal into production, Echo was also actively exploring the region to add incremental, near surface ounces to further enhance a planned restart of the Bronzewing processing facility in 2019.
The company recently completed a drilling program at the Mt Joel prospect in the hopes that exploration will lead to an increased mine life for the Yandal site.
“One of the clear advantages of our Yandal project is the amount of infrastructure we have already established on site around our Bronzewing processing hub”
“We’ve seen consistent intersections of good grades over large widths and these results will all contribute to an updated mineral resource estimate due before the end of the March quarter 2019,” Mr Rajasooriar said.
“Our objective has been to add additional high-quality oxide ounces to our resource base which can be included in the first four-years of the mine plan for the Yandal project.
“We’ve still got some work to do at Mt Joel but we’re confident that it will make an important contribution to the overall project.”
The prospect was just 12km northeast of the Bronzewing processing hub, with discontinuous gold mineralisation extending more than 8km.
Significant results included 16 metres at 24.1 grams per tonne gold from 26m (MJRC119) with consistent gold mineralisation at shallow levels.
Mr Rajasooriar said the company had also gathered extensive geological data, which would aid in further exploration of the system.
“With an exploration budget to be funded by production, we are excited about the deep exploration potential of the area,” he said.
Once the Yandal BFS was finalised and project financing completed, Echo would be in an excellent financial position to make the leap from explorer to gold producer.
“We feel we’re well placed now to transition the company through financing, construction and into production”