Saturn Metals (STN) presented updated economics for its Apollo Hill gold project in Western Australia at the Resources Rising Stars Gold Coast Conference on Thursday, outlining a path toward a definitive feasibility study expected in December and a construction target of early 2028.
The company acquired the land package from Sumitomo Metal Mining roughly three years ago. The 1,100-square-kilometer tenure includes about 1,000 square kilometers centered on Apollo Hill, which hosts 16 identified prospects and a 24-kilometer air-core gold trend. The Norseman-Wiluna Greenstone Belt has historically produced approximately 44 million ounces of gold.
Saturn reported measured and indicated resources of 2.2 million ounces, representing about 86% of the total resource estimate. An additional 600,000 ounces were added during a July 2024 resource upgrade. Inferred resources total 2.8 million to 3 million ounces, depending on the scenario. The company described the long-term vision as a 4 million- to 5-million-ounce gold system.
Drill intercepts highlighted high-grade intervals, including intersections grading 25 grams per tonne, 70 g/t and 271 g/t. Ore zones extend up to 300 meters wide on benches, with deeper drilling targeted around 200 meters depth on a five-kilometer section spacing.
The pre-feasibility study assumes a 10 million tonnes-per-annum processing plant producing about 100,000 ounces of gold annually from a heap-leach pad stacked to approximately 10 meters. The mine life was calculated at 14 years, with the forthcoming definitive feasibility study expected to extend that duration.
Under a conservative gold-price assumption of $4,300 per ounce — roughly $1,800 below current market levels near $6,100 per ounce — Saturn estimated an operating margin of about $20 per tonne, translating to approximately $200 million in annual free cash flow at full production. Processing plant capital costs were estimated at $472 million. At those conservative prices, the project yields a 2.3-year payback period, a 51% internal rate of return and a net present value just under $1 billion. At current gold prices, the IRR rises to about 125% and NPV approaches $2 billion.
Saturn ended a recent capital raising with approximately AUD 150 million in cash. The company's market capitalization stands at $8.19 billion, with institutional ownership comprising roughly 55% to 56% of the share register. Shares trade at $70.52, down 34.85% over the past year and 24.92% year to date.
"We are working very hard to make this Australia's next new virgin deposit, heap leach gold operation," management said. "Arrived on a global scale."
