Aris becomes operating partner in feasibility-stage gold project in Colombia
Canadian miner Aris Gold will acquire a 20% interest, with the option to acquire a further 30% stake, in the Soto Norte gold project in Colombia, from Abu Dhabi-based investment company Mubadala Investment, it announced on Monday.
The Soto Norte gold project is one of the world's biggest feasibility-stage projects with high-grade mineral reserves, low capital intensity, low operating costs, and district-scale potential. Aris has completed a feasibility study technical report on the Soto Norte project, which has been privately held since 2011.
Aris chairperson Ian Telfer stated: "Acquiring interests in large-scale deposits with low technical risk is the right move for Aris Gold. This is how successful gold mining companies are built, and I'm pleased to see Aris Gold is delivering on this responsible growth strategy."
Soto Norte increases Aris’ growth profile with its potential to produce more than 450 000 oz/y of gold at an all-in sustaining cost of $471/oz over 14 years, CEO Neil Woodyer stated.
He added that construction of the project would follow the expansion of its 100%-owned Marmato gold mine.
Soto Norte is designed as an underground mine with 2.6-million-tonne-a-year processing capacity and an estimated $1.2-billion initial capital cost. The study estimates an aftertax project net present value of $1.5-billion and an internal rate of return of 20.8%, at a base case gold price of $1 675/oz.
Soto Norte has indicated mineral resources of 48.1-million tonnes at 5.47 g/t of gold, 35.8 g/t of silver, and 0.18% copper containing 8.5-million ounces of gold, 55.3-million ounces of silver, and 193-million pounds of copper, inclusive of mineral reserves.
Meanwhile, Aris reported that it had strengthened its financial position by $100-million by upsizing the existing precious metals stream at the Marmato mine by $65-million and arranging a $35-million convertible debenture.
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