PERTH (miningweekly.com) – A feasibility study (FS) into Aim- and ASX-listed Metminco’s Miraflores gold project, in Colombia, has found that the project could deliver average production of 45 000 oz/y of gold and 22 600 oz/y of silver.
Metminco reported that the project was expected to cost about $71.8-million to develop, with an additional $18.5-million required in sustaining capital over the nearly ten-year mine life.
Based on a maiden ore reserve of 4.32-million tonnes, grading 3.29 g/t gold for 456 000 oz of gold, the FS estimated an after tax net present value of $72.3-million and an internal rate of return of 25%.
“We are delighted with the positive FS outcome, which is further vindication of the company’s decision to pursue an underground-only development option at Miraflores as a means of reducing capital costs and shrinking the mine footprint,” said Metminco MD William Howe.
“The study delivers robust returns and with this now in hand, we can focus on arranging the required finance and securing the outstanding approvals in order to be in a position to make a decision on development in a timely manner.”