Kingsgate says Chile precious metals mine may cost $140m
PERTH (miningweekly.com) – A definitive feasibility study by gold miner Kingsgate Consolidated has placed a $140-million price tag on the development of its Nueva Esperanza silver/gold project, in Chile.
The ASX-listed miner said on Monday that the project was likely to produce about 7.5-million ounces a year of silver equivalent, based on the current reserve of 17.1-million tonnes, at 97 g/t silver and 0.27 g/t gold, running over three deposits.
The mining schedule outlined a mine production rate of about three-million tonnes a year, with the project likely to deliver about 40-million ounces of silver and 112 500 oz of gold over the initial six-year life. There is potential to significantly extend the mine life, Kingsgate reported.
“We remain optimistic in the mineral endowment of the immediate vicinity, which has the potential to provide Kingsgate with a long, sustainable operating presence in this region,” commented MD and CEO Gavin Thomas.
The company’s strategic plan was to bring the Nueva Esperanza project into production to provide an operating base to explore and identify additional areas of mineralisation within the current exploration licence area.
First production at Nueva Esperanza has been targeted for the first half of 2016.
“The decision to begin construction is anticipated in the second half of this year, and will put Kingsgate back on a growth path and validate the underlying value of the project acquisition,” Thomas said.
Meanwhile, discussions were also under way with potential debt financiers, with several financing options to fund Nueva Esperanza being considered.
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