Last year’s prefeasibility study flagged a hefty $93M EBITDA per annum over a seven-year mine life, using price assumptions of US$2000 (A$3225) per ounce gold and US$15,000/t (A$24,200) antimony.
Although the definitive feasibility study is now being modelled on modestly higher commodity prices of US$2400 per ounce gold and US$25,000/t antimony, it is still a far cry from current stunning spot prices of more than US$3200 per ounce and US$60,000/t, respectively.
Add in an all-in sustaining cost projected to fall deep into negative territory when antimony credits are factored in and Larvotto looks highly likely to recoup its $73M capital outlay in well under a year.
Meanwhile, the drill rigs are humming at Hillgrove. Four diamond rigs are running double shifts using a 30-strong crew to lift the quantum of drilling metres and a fifth rig is on the way.
Recent holes at the company’s Bakers Creek and Eleanora-Garibaldi prospects returned rich intersections at depth and close to existing underground workings at Hillgrove.
The new mineralised zone could be the perfect kicker to Larvotto’s early mining plans by providing immediate access to low-cost, high-grade ore.
Best results included a whopping 0.6m grading 183g/t gold equivalent at 493m depth from Bakers Creek and 8.3m grading 10.39g/t gold equivalent from 408.7m. The hits backed up an earlier intercept of 31m grading 65.8g/t gold at the prospect.
Larvotto also hit paydirt at its Eleanora-Garibaldi prospect with standout gold-antimony numbers and has added a further 120m of down-dip extension.
A highlight intercept pulled in 2.9m at a sizzling 20.13g/t gold equivalent, within a 5m hit going 8.38g/t from 310.9m deep. Another hole lit up the core with 5m at 8.38g/t gold equivalent inside a broader 20.7m stretch grading 3.49g/t from 146m.
Garibaldi currently holds an inferred and indicated resource of 2.35Mt at 6.6g/t gold equivalent, packing 372,000 ounces of gold and 17,000t of antimony.
With community engagement firing, exploration heating up, feasibility work nearing the finish line and booming metal prices, Larvotto appears to be building serious momentum across the board.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
