TSX-listed Euro Sun Mining has completed a preliminary economic assessment (PEA) for the initial phase of development at the Rovina Valley gold/copper project, in Romania, detailing plans to produce 108 000 oz/y of gold and 13.3-million pounds a year of copper, or 139 000 oz/y gold equivalent.
The PEA focuses on the exploitation of the Colnic openpit, which will produce 1.67-million gold equivalent ounces over 12 years, at an all-in sustaining cost of $752/oz of gold equivalent.
Besides Colnic, which is the first stage of development at the project, Rovina Valley also consists of the Rovina gold/copper deposits, which are amenable to openpit development, and the Ciresata gold/copper deposit, suitable for underground development.
All three deposits are in close proximity and mill feed will be treated at a central facility.
Euro Sun CEO Scott Moore said on Wednesday that Colnic would form the foundation of a multi-decade operation with the expectation of bringing the Rovina pit on line using pre-installed infrastructure followed by the Ciresata deposit.
Colnic is an at-surface openpit deposit containing only 28.6% of the total measured and indicated resources at the Rovina Valley project.
The PEA for the Colnic openpit calculated a pre-tax net present value of $218.1-million with an internal rate of return of 15.4%. The initial capital cost is estimated to be $339.7-million.