Leonora (Au)

The 268km² Leonora Gold Project is located 30km northeast of the mining town of Leonora, and approximately 250km NNE of Kalgoorlie, Western Australia.  Leonora is in an area of favourable infrastructure including a network of high quality roads, an airstrip with regular services to Perth and proximity to an established mining supply network.

Following the completion of a Pre-Feasibility Study in March 2009, Navigator is conducting a trial mining and milling program at Leonora between February and June 2010.  Subject to a successful trial, Navigator will seek to fast-track Leonora to become its second producing gold mine with annualised production in the range of 40,000-60,000oz of recovered gold.

The purpose of the mining and processing trial of 75,000 tonnes of ore is to:

• test and verify mining cost estimates;
• verify ore grade and recovery; and
• determine optimum material blend.

The trial is expected to produce around 5,000oz of gold and generate A$0.5-$1.0 million of cashflow.  Mining commenced in February and treatment of the first batch of ore through St Barbara Ltd's Leonora processing plant occurred in mid April 2010.

The completion of a Pre-Feasibility Study in March 2009 marked a significant milestone in the Project’s five-year history with Navigator.  During this time Navigator had discovered and successfully explored three 2km-long gold systems at Cardinia, Mertondale and Tonto-Eclipse, which formed the basis of the Pre-Feasibility Study.

The Pre-Feasibility Study results showed that a 53,000oz per year gold mine could be run at Leonora for six years following the investment of some A$45 million of project development capital.  At a A$1,250/oz gold price, the Project presented an NPV of A$43 million and an IRR of 32%.  The 750,000oz JORC compliant resource also showed that there is significant potential to extend the mineral resources at Leonora through further brownfield exploration.