PERTH (miningweekly.com) - Gold miner Luiri Gold on Tuesday reported that a scoping study into its Matala project, in Zambia, had proven that it could deliver some 176 000 oz over a nine-year mine life.
Capital expenditure for the project had been estimated at some $48-million, while cash costs were estimated at $844/oz.
The scoping study also found that the project would have a net present value of some $34.6-million, and an internal rate of return of 30%.
“The scoping study has shown Matala to be a very doable project, based on sublevel long-hole open stoping, a mining method which is in common use in Zambia’s copper mines,” said Luiri MD Evan Kirby.
It was anticipated that the Matala development would start in 2015, when the Dunrobin project had reached full production, and would ultimately bring the company’s combined gold output to between 40 000 oz/y and 50 000 oz/y.
Following the positive outcome of the feasibility study, additional work to improve the level of project definition was now planned at Matala.
The feasibility study work would include additional drilling to prove a portion of measured resource, additional test work, environmental permitting, and more definitive mining and processing studies.
“We are looking forward to taking the Matala project to feasibility study level over the next two years,” said Kirby.