Egan Street Resources announced that it has completed the Definitive Feasibility Study (DFS) on its 100% - owned Rothsay Gold Project, located 300 km north-east of Perth in WA's Midwest region, with the results confirming the potential for a new low-cost, high-margin Australian gold project capable of delivering strong financial returns for shareholders. The DFS concludes that the Rothsay Gold Project is financially and technically viable based on its previously announced redevelopment strategy targeting unmined fresh material which can be accessed via an existing decline. Rothsay has a rich mining history dating back to the discovery of gold in 1894 and including several phases of mining, most recently by Metana Minerals in the early 1990's. The DFS builds on a Pre - Feasibility Study (PFS) completed in May 2017, delivering a 25% increase in projected gold production to 250,000 oz over an initial 6.5 - year mine life, with increased average annual production of 53,000 ozpa over the first four years. Together with a 22% increase in undiscounted pre - tax project cash - flow to $100 million, the DFS demonstrates that the Rothsay Project has the potential to generate strong cash - flows underpinned by high - grade, high - margin gold production. The DFS is based on processing 1.2 Mt at an average grade of 6.94 g/t Au for approximately 250,000 oz of gold production (up from 936,000 t at 7.0 g/t Au for 200,000 oz in the May 2017 PFS). Forecast life of mine (LOM) cash costs C1 are AUD 941/oz and all - in sustaining costs (AISC) are AUD 1, 083 /oz. The proposed 6.5 - year LOM production target contains material from both the Indicated and Inferred Resource categories. The majority of the production target (73% of ounces) is sourced from Indicated Resources with the remaining (27% of ounces) drawn from Inferred Resources. Based on these parameters, the Rothsay Gold Project delivers a Net Present Value using a 5 % discount rate of $80.4 million and has an estimated capital payback period of less than 1.5 years. A gold price of USD 1,275/oz and a n exchange rate (USD: AUD) of 75 cents (AUD 1,700/oz gold price) has been assumed for the DFS. Gold produced over the first four years averages 53,000 oz pa (peaking at 60,000o zpa), which equates to $30 million of free cash flow per year. Importantly, the Woodley's Shear the key gold - hosting structure at Rothsay remains open at depth and along strike, and the project is highly leveraged to further increases in Resources and Reserves. EganStreet is currently exploring for additional high - grade gold disco veries within the Woodley's shear, with the Rothsay mining tenements containing a known 14km strike length of this highly prospective structure. Immediate opportunities to grow the high - grade Resource and Reserve inventory exist to the south of the current Ore Reserve. A 4,000 metre diamond drilling programme is scheduled to commence this quarter to test for extensions to south on both Woodley's and Woodley's East Shear. The Company has not been able to target these down - plunge extensions due to mining tenement conditions that previously restricted drilling in this part of the tenement. Next Steps The EganStreet board has approved the DFS and, subject to obtaining a suitable financing arrangement, has approved the Rothsay Project to proceed to construction. It is expected construction will commence immediately after project financing has been completed, with first gold production targeted for Quarter 4, 2019. EganStreet has also appointed PCF Capital Group Pty Ltd, a leading resource specialist, as financial advisor to assist with securing debt facilities for the project. The Company held cash of approximately $11.5 million at 30 June 2018 and intends to utilise some of this cash to contribute towards the equity portion of the overall project financing package, as well as to continue an aggressive exploration programme.