Australian resource company Everest Metals has launched a strategic review to develop the Mt Dimer Taipan gold and silver project, located around 150km west of Kalgoorlie.

Everest Metals has completed an initial open pit optimisation assessment on the project using the existing mineral resource estimate model.

The assessment results indicate that Mt Dimer has the potential to host a profitable, small-scale open pit mining operation on a toll-treatment basis.

The company believes that the current AUD gold price will provide a favourable pricing environment to potentially deliver robust returns.

It has started preparing a Mining Proposal and Mine Closure Plan for open pit mining at Mt Dimer to submit to the Department of Energy, Mines, Industry Regulation and Safety (DMIRS).

Also, the company has prepared a mining proposal scoping document (MPSD) for DMIRS, which would confirm the required environmental approvals pathway for Mt Dimer.

It will also conduct flora and fauna reconnaissance, waste rock and soil characterisation work for developing the Mining Proposal, to be submitted to DMIRS in the first quarter of 2024.

Everest Metals expects the granting of regulatory approvals in the second half of 2024.

Everest Metals executive chairman and CEO Maík Caruso said: “A current AUD gold price over $3,000 per ounce with a favourable outlook materially changes the economic outcomes for developing the Mt Dimer Taipan project.

“The company is pleased to announce its commitment to the development of its 100% owned project with a view to commencing a profitable mining operation in the medium term.”

Acquired by Everest Metals in 2020, the Mt Dimer project comprises an exploration tenement (E77/2383) that adjoins the west of Mining Lease (M77/515).

Initial exploration in 1988-90 by Placer Exploration identified several geochemical anomalies, that defined project geology, and subsequently drilled to define a Resource.

The Mt Dimer deposit was partially mined by Taipan between 1995 and 1996, excavated to the base of weathering with the initial model extending at depth and to the north of the current pit.

Mining ceased due to several factors, including wall failure on the northeastern side of the open pit, and suppressed gold price to A$450.

Cadre Resources purchased the project in 2017 and drilled four exploratory RC holes at a nominal 100m spacings along the strike of the deposit.

Everest Metals acquired the project in 2020 and conducted an aerial drone survey over the mining lease area to create an ortho-mosaic image and Digital Terrain Model (DTM).

In 2021, the company’s Maiden Inferred Mineral Resource Estimate for the Mt Dimer project was at 722kt @ 2.10 g/t Au for 48,545oz of gold and 3.84g/t Ag for 89,011oz of Silver.