Shining Brighter: Godolphin Lifts Gold Recovery at Lewis Ponds

Why It Matters

Higher recovery improves project cash flow and validates processing assumptions, enhancing Lewis Ponds’ attractiveness to investors amid a bullish gold market. It also adds upside potential to the already strong NPV and IRR forecasts.

Key Takeaways

• Gravity circuit adds 21% gold recovery, total ~83%.
• Concentrate reaches 51.3 g/t Au, 16‑fold upgrade.
• Up to 65% of gold captured via gravity recovery.
• Scoping study NPV $481M, IRR 24% at $3,700/oz.
• 2,500 m drilling program targets resource growth.

Pulse Analysis

Godolphin Resources’ recent metallurgical testwork demonstrates how a simple gravity circuit can dramatically boost gold recovery at a high‑grade deposit. By feeding a Knelson concentrator before flotation, the company lifted overall recovery by 21 percentage points to roughly 83 % in the core ore domain, with the gravity stream delivering a concentrate as rich as 51.3 g/t Au—a 16‑fold increase over feed grade. This coarse‑gold capture, accounting for about one‑third of the total metal, aligns with a broader industry trend of leveraging gravity‑based methods to improve economics in low‑cost, high‑grade projects.

The recovery uplift directly strengthens the financial case presented in Godolphin’s February scoping study. At a base‑case gold price of US$3,700 per ounce, the project already generated a pre‑tax NPV of $481 million and an IRR of 24 %. Incorporating the higher recovery pushes cash flow assumptions upward, narrowing the gap to the upside scenario that projects a $1 billion NPV and a 40 % IRR when gold trades above $5,000 per ounce. In a market where analysts such as JP Morgan forecast gold prices remaining above $6,300 by 2026, the added margin offers investors a more resilient upside.

Looking ahead, Godolphin has launched a 2,500‑metre drilling campaign aimed at expanding the resource envelope and identifying new gravity‑recovery zones. Continued metallurgical optimisation could further raise recovery rates, reducing capital intensity and shortening the path to production. For the broader gold sector, the Lewis Ponds results underscore the value of integrating gravity circuits into processing flowsheets, especially in deposits with coarse‑gold end‑members. As central banks and retail investors maintain strong demand for bullion, projects that combine robust economics with flexible recovery options are likely to attract heightened capital allocation.