Dateline reports strong BFS for California gold, rare earths project

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. ASX-listed Dateline Resources says the results of the bankable feasibility study (BFS) for its 100%-owned Colosseum gold and rare earth element (REE) project, in San Bernardino County, California, demonstrates a robust gold development, generating significant margins. Highlights from the BFS, which indicate a technically simple restart with strong economics, include a $1.08-billion undiscounted pre-tax free cash flow, increasing to $1.36-billion using the gold spot price. It also reveals a $785-million net present value (pre-tax), increasing to $999-million using the spot price. There is a 49.5% internal rate of return (pre-tax) at a base model gold price of $4 200/oz, increasing to 59.5% using a spot price of $4 700/oz. The project requires $249-million of startup capital (including $16-million of capitalised mining), as well as a $25-million contingency. The BFS shows 75 000 oz/y average gold production of over the first six years, with 573 000 oz total gold production over the 10.4-year mine life. Peak gold sales of 102 000 oz are expected in the sixth year. An about $55-million increase in undiscounted pre-tax free cash flow is anticipated for every $100/oz increase in the gold price. The BFS shows a $1 825/oz all-in sustaining cost based on current industry costs. A low 3:1 strip ratio highlights Colosseum's strong mining efficiency, with reduced waste movement supporting lower operating costs. There are 55 000 oz of inferred mineral resources within the pit shell that have not been included in the ore reserve. There is also additional underground potential in the northeast of the North pit, that is open at depth and subject to ongoing drilling not included in ore reserve, including recently drilled holes. "Since acquiring Colosseum in 2021, we have recognised the significant potential of the project. The near vertical nature of mineralisation associated with the breccia pipes demonstrates excellent continuity that continues with depth," says Dateline MD Stephen Baghdadi. "Since the original scoping study was completed in October 2024, we have continued to see strength in the gold sector, with the project forecast to generate operating margins of greater than $2 500 /oz. "With the BFS complete and the front-end engineering studies well under way, our engagement with project financiers is advance as we look to secure the funding required to commence production as soon as possible," he adds.