Papillon Resources has soared the most in over two years after releasing a pre-feasability study that confirms the robust economics of its Fekola Project.
The West-African gold miner jumped by 17.1% to 68.5 cents at 1401 AEST following its announcement to the Australian Stock Exchange that the project would produce 306,000 ounces of gold on average over the life of the mine.
However, Papillon is still 60% lower in the year to date amid the gold spot price's 25.2% decline to $US1252.2 an ounce.
The initial mine life is expected to be nine years with "significant potential" for extensions.
"Using our current mining schedules, Fekola will still produce average pre-tax (post royalty) operating cash flows in excess of $US 130 million per annum using a flat US$1,100 per ounce gold price," Papillon said.