Name of the Project
Santa Luz gold project.

Location
Brazil.

Client
Leagold Mining Corporation.

Project Description
Santa Luz has proven and probable openpit mineral reserves of 28.2-million tonnes at 1.39 g/t containing 1.26-million ounces of gold. Mineral resources are estimated at 40.9-million tonnes grading 1.5 g/t gold.

A feasibility study on the project has demonstrated the potential for the mine to be a strong cash flow generator, with potential to add more than 100 000 oz/y. As Santa Luz was a previously operating mine, all major infrastructure is in place and the new construction is mostly limited to retrofitting the plant for gold recovery using resin versus carbon.

The original processing plant was placed into operation in mid-2013 and was shut down in September 2014. The original plant was carbon-in-leach, which did not operate well, with low gold-recovery rates associated with carbonaceous ores. Subsequent metallurgical testing programmes, including the operation of a pilot-scale plant, have demonstrated that resin-in-leach (RIL) will be successful for the project, with estimated gold recovery rates of 84%.

The project is expected to produce 1.06-million ounces of gold over an 11-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $149-million and an internal rate of return of 47%, with a payback of less than two years.

Value
The capital cost to complete and restart the mine is estimated at $82-million, including $12.3-million of working capital and first fills.

Most of the construction capital is related to the installation of the RIL circuit, which primarily consists of a pre-aeration tank, two conditioning tanks and five stirred RIL tanks in series.

Duration
The project is expected to have a short, ten-month construction period.

Latest Developments
All necessary licences and permits are in place for construction and the resumption of operations, with only minor adjustments needed with respect to the updated plans for modifying the existing tailings facilities.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Leagold Mining Corporation, tel +1 604 398 4505 or email info@leagold.com.