Study on Vertex Minerals (ASX: VTX) new gold plant suggests lower capex on Reward mine

Highlights

• Vertex has received new engineering study for the redesigned and recently acquired Gekko gravity gold plant.
• The study suggested that the plant would cut Reward gold mine capex.
• The re­-engineered plant would require less power and water than calculated in the PFS.
• VTX is updating the Reward PFS to incorporate the lower capex of the plant.

Vertex Minerals Limited (ASX: VTX) has received the engineering study for the recently designed and acquired Gekko gold gravity processing plant. The 16 t/h-rated plant was acquired for future onsite gold ore processing at the company’s Hill End gold project.

The engineering study was conducted by Gekko Systems, a technical leader in gold processing and low-energy mining solutions globally, highlights the update.

New plant to cut Reward mine capex

The major changes between the new build PFS (pre-feasibility study) plant and re-engineered acquired plant includes flowsheet, water and power demand, CAPEX and OPEX changes.

The flowsheet changes include three stage crushing rather than two stages, slightly reduced nominal throughput rate, regrind mill downsized to ML1500, multiple smaller gold centrifuges and InLine Pressure Jig replacing Spirals.

The refurbished plant would be able to treat up to 120ktpa and would move forward gold production to up to five months. The new plant has the PLC operated sequenced stop and start capabilities and offers rigid gold security, while allowing remote monitoring.

The plant reduces power and water usage, decreases operating costs as it requires two operators and offers substantial savings on a new build.  

Image source: Company update

Raw water demand has decreased from 35m³/h to 10m³/h, while installed power has dropped to 365kW from 688 kW.

The study suggests lower CAPEX and refurbishment and re-use of various fixed plant from the Reward and Morningstar Plants. Moreover, the maintenance and power consumption requirements have been changed as per the new flowsheet and throughput.

The company highlighted that the plant is ideal for the free milling, high-grade Reward ore and is expected to deliver gold recoveries of 92%.

The PFS on the Reward Gold Mine is being updated to include the lower CAPEX of the Gekko plant.

VTX shares traded at AU$0.086 apiece at the time of writing on 21 February 2024.