Joint venture partner CopperChem completed the study into an open pit copper-gold mine with offsite processing.

The study returned a 21-month mine life to produce 16,223 tonnes of copper, 2753 ounces of gold and 43,327oz silver from two open pits.

Pre-production costs were estimated at $A32.1 million.

Life-of-mine pre-tax cashflow was calculated at $17 million, based on a $7450 per tonne copper price, $1308 an ounce gold price and $22/oz silver price.

The study showed that the project was highly sensitive to moves in the copper price, with a 10% rise in the Australian dollar price to add an additional $11.6 million to cashflow.

Barbara has a pre-tax net present value of $14 million and an internal rate of return of 87%.

But Syndicated said the lack of economic treatment options in the Mount Isa region meant its proposed “dig and deliver” operation was not viable, and the company’s recent exploration efforts had not defined near-term opportunities for a standalone operation.

As a result, the 50:50 partners have agreed to pursue other avenues to realise value from the project.

At the same time, Syndicated will look for new base metal and gold opportunities outside North Queensland.

The company will cut costs, with managing director Andrew Munckton and the three non-executive directors will reduce their remuneration by 33%.

The Mount Isa office will close and Syndicated will look to relocate its Perth office to a smaller premises.

Syndicated had $1.7 million cash at the end of the June quarter and is yet to release its September quarterly.

“While these are obviously difficult times for the junior resource sector – and it is disappointing and regrettable to have to take such steps to reduce our cost base – it is important that we move quickly to preserve our remaining cash reserves and place the company in a position where we can reposition for the future,” Munckton said.
  
 “Importantly, we have the in-principle backing of CopperChem to implement this new corporate direction, which will involve pursuing a number of avenues to unlock the significant value of our North Queensland asset base while at the same time identifying assets which can put the company on a long-term growth path.
  
 “These processes are already well underway and we are confident that the board can leverage its skills and experience, both to unlock the inherent value of the copper assets in North Queensland and to identify and secure suitable assets to define the company’s future.”

Shares in Syndicated slumped 36% to 1.4c.