Forrestania Resources (ASX:FRS) reported a maiden ore reserve for the Edna May deposit in Western Australia of 12.6 million tonnes at 0.99 grams per tonne gold for 402,800 ounces of gold in the probable category at a 0.50 g/t cut-off grade, according to a Friday Australian bourse filing.
The company said the pre-feasibility study (PFS) estimates pre-tax undiscounted free cash flow of AU$728.7 million at a gold price of AU$5,500 per ounce over a 10-year project life, with an operation life of 10 years mining and nine years milling at an average all-in sustaining cost of AU$3,293 per ounce, total project capital of about AU$98 million and average metallurgical recovery of about 93%.
The Edna May mineral resource estimate stands at 30.7 million tonnes at 1 g/t gold for 945,000 ounces, with about 77% of contained gold ounces classified as measured and indicated, it added.
The company's shares rose 1% in recent Friday trade.