Canadian junior Thor Exploration’s definitive feasibility study (DFS) at its Segolila gold project, in Nigeria, envisions a construction start date in the second quarter of the year and an 18-month construction period, for an initial five-year mine life.
The company is proceeding with engineering, procurement and construction documentation with its preferred contractor, Norinco International, which also assisted with the feasibility study.
Further, Thor announced on Monday the completion of an independent preliminary economic assessment (PEA), undertaken by Roscoe Postle Association, for a proposed supplemental underground project at Segolila.
The DFS comprises an openpit mine and includes construction of a 625 000 t/y processing plant, which will consist of a conventional crushing circuit, two-stage grinding, gravity, carbon-in-leach, elution, eletrowinning and smelting to produce gold ore.
The DFS estimates a post-tax internal rate of return of 50% on the Segolila project, with pre-production capital of $87-million required, while the PEA estimates further development capital of $13-million for the underground project.
It is also estimated by the DFS that the project can produce an average 80 000 oz/y at an all-in sustaining cost of $662/oz. The probable mineral reserves for Segolila stand at three-million tonnes grading 4.2 g/t gold, containing 405 600 oz at 0.77 g/t cut-off.
Meanwhile, the underground project considers an initial three-year underground operation, which can be brought on during the openpit mine life to supplement the pit ore with high grade underground production. The deposit remains open below the resources that are considered in the underground project.