Infrastructure plays a crucial role in the success of any mining project. It can be said that the viability of a project is often determined by the presence or absence of the right infrastructure, as even the most lucrative projects can be derailed without proper infrastructure.
There are two categories of infrastructure that a mining project requires i) infrastructure required for the mine development and operation ii) infrastructure required for the evacuation of the ore to the port or the site for processing.
Some of the critical infrastructure that almost every mining project requires:
Headquartered in Victoria, Alice Queen Limited (ASX: AQX) is involved in gold and copper exploration activities in Australia. With an experienced team of mining executives, the advanced gold explorer is developing mining and exploration opportunities, with a major focus on its 84.5 per cent owned flagship project in the Torres Strait in far north Queensland, Horn Island Project.
For more information on the companyâs key projects, read Acquaint Yourself With Horn Island And Yarindury Projects Of Alice Queen.
Horn Island Project
Horn Island Project, which is believed to hold the ability to progress the mineral resource estimate to BFS, is a brownfields gold project, holding prospects for gold-bearing Carbo-Permian style vein/breccia. The project, which is the site of historic mining area since late 1890s, boasts an underexplored mineral field spread over an area of 35 square kilometres and pit deposit (JORC 2012) of 7.9 million tonnes at the rate of 1.9 gram per tonne of gold for a total of 492,000 ounces of gold on at the inferred level.
Horn Island project holds the potential to be a large-scale gold project, backed by a summary report from soils sampling and a review of the projectâs multi-element geochemical database.
For the project, the company has an earn-in and joint venture agreement. More on the JV with gold miner St Barbara Limited (ASX: SBM), targeted towards exploring and developing the project into a profitable gold mine, can be read here.
With respect to the project, the company is currently engaged in target generation. Let us have a look at the infrastructure advantages of Horn Island that are helping and supporting the company with the project development.
Horn Island â Aided by Excellent Infrastructure
Horn Island Project is located near the township of Wasaga, which has a population of around 650 people. The project has significant infrastructure and is well serviced by a deep-water port, Sea Swift, Horn Island Airport (Qantas Link and various freight and charter operators), and multiple passenger ferries, in addition to a power station and large freshwater supply.
Access to Freshwater Supply
As mentioned above, the project has access to the freshwater supply. Water is critical for low production, but high value, products such as gold where water is needed to transport and process very low-grade ore. More than 250 ML of water is required to produce a tonne of gold.
Transport infrastructure is often critical for mining operations to become effective and economically viable, as inadequate links can put a bottleneck on production. Horn Island Project presents excellent connectivity to transport facilities, including Horn Island Airport, a ferry terminal, a port and a quarry, bringing the project much greater freight capacities and more direct routes.
A strong, high availability communications network not just plays an important role in improving the safety of employees, but also enables the company to stay up-to-speed with changes in supply and demand. Good communications network bridges the gap between remote locations, boosts management efficiency and lessens the time taken for making key business decisions.
Access to 4G telecommunications is another significant infrastructure advantage to Horn Island Project.
Alice Queen Limited, backed by a sound infrastructure, is well-positioned to capitalise on the robust portfolio that the company holds. Furthermore, Horn Island holds the potential to be a large-scale gold deposit, which is further reinforced by the companyâs joint venture with St Barbara.
On 19 November 2019, the stock of the company was trading at AUD 0.036 (AEST: 2:51 PM), with a market cap of AUD 29.53 million and approx. 798.04 million outstanding shares. The year to date return of the stock stands at 105 per cent, while in the last six months, the stock has delivered 184 per cent.
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