VANCOUVER (miningweekly.com) – Guyana-focused project developer Goldsource Mines has completed construction of its Eagle Mountain mine, allowing for commissioning activities to start.
The TSX-V-listed company in December announced that first production would be pushed out by about six weeks, after an automation control panel was damaged during shipment to site, requiring replacement.
“With the start of commissioning, Goldsource begins the exciting process of transitioning into a new junior gold producer. Over the next two weeks, we will be completing extensive testing along with dry and wet runs of mined materials through the process facility.
“The next several months of production ramp-up are considered the ‘proof of concept period’ to demonstrate that operational and cost parameters outlined in the PEA [preliminary economic assessment] are achievable. This will be an important milestone for the company,” stated president Yannis Tsitos.
He noted that the company expected the capital cost for construction of Phase I to be under budget at less than $5-million, compared with the estimated PEA budget of $5.9-million.
Based on the PEA dated September 12, 2014, the Phase I development initially entailed a 1 000 t/d openpit, gravity plant, ramping up in phases to between 3 000 t/d and 4 000 t/d, for an eight-year mine life. The first phase was expected to produce gold at cash operating costs of $480/oz of gold.
The company had been debt free as of December 31.