Magnetic Resources (ASX:MAU) said that a feasibility study for the Western Australia-based Lady Julie gold project confirmed a life of mine of nine years, with low-cost gold production of 1.02 million ounces, averaging 140,000 ounces-per-year, once in full production, according to a Wednesday Australian bourse filing.

It estimated average all-in sustaining costs of AU$1,908 per ounce over life of mine, which includes sustaining capital of AU$101 million. Initial capital cost was estimated at AU$375 million, with a payback period of around 30 months from commencement of production.

The operation comprises three open pits, an underground mine, and a 2.75 million tonnes-per-annum gold processing plant with associated services and facilities.

It plans to begin detailed engineering workstreams to allow for the ordering of key long lead items.