Argonaut submits scalable, lower-cost Magino feasibility study
VANCOUVER (miningweekly.com) – TSX-listed Argonaut Gold has revealed details of a cheaper, more scalable approach to developing its 100%-owned Magino gold project, near Wawa, in Ontario.
Opting to start out with a 10 000 t/d mill, instead of the 30 000 t/d mill envisioned in its January 2016 prefeasibility study, the project now represents an in-house fundable venture, should a construction decision be made, the Toronto-based company said on Wednesday.
Assuming a $1 250 gold price and a 0.78:1 US dollar to Canadian dollar, the readjusted Magino mine and mill would have an after-tax net present value, using a 5% discount, of $288-million, and an internal rate of return of 19.5%, with a 3.9-year payback period.
The mine is expected to produce 1.96-million ounces of yellow metal over the mine life, at an average rate of 115 700 oz/y.
The feasibility study pegged the preproduction capital at $321-million, including a contingency of $28-million. Sustaining and closure costs are set at $84-million.
The project’s all-in sustaining cost is expected to average $711/oz. Gold production will average 123 000 oz/y, over the 14-year life of the mine.
The mine plan is based on measured and indicated resources of 144-million tonnes, grading 0.91 g/t gold, plus 33.2-million tonnes of inferred resource grading 0.83 g/t gold.
The company’s Toronto-quoted equity gained as much as 3.8% on Wednesday, to C$2.47 apiece.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation