TSX-V-listed Golden Predator Mining is accelerating work on the Phase 2 plan for the Brewery Creek mine restart, following the positive progress during the Phase 1 work that focuses on reprocessing of existing heap leach material.
The Phase 2 study will evaluate resumption of the mining of new material from oxide resources contained in the company’s mineral resource estimate. The current estimate from late 2019 is being updated by Gustavson & Associates.
Golden Predator will deliver a comprehensive definitive feasibility study, which incorporates work from both phases, by the end of the year.
The company says the combination of Phases 1 and 2 is expected to evaluate the economic factors necessary to achieve significantly accelerated cash flow from increased early production.
The Phase 1 restart study, by Kappes Cassiday & Associates, is 90% complete and evaluates the economic viability of reprocessing the approximately 10-million tonnes of run-of-mine (RoM) material left by the previous operator on the project’s heap leach pad with an originally calculated mined grade of 1.5 g/t gold.
Gold recovery from the RoM ore by Viceroy was not as anticipated and the work to date by Kappes confirms the prospects of further gold recoveries from this material after crushing and restacking.
“As Phase 1 restart work has progressed, it has become evident that Phase 1 and 2 should proceed together to take advantage of emerging synergies and higher gold prices to generate enhanced cash flow. Since most of the project’s capital expenditure is required for startup in Phase 1, combining the added potential of higher-grade new material should produce significantly more ounces and a better economic return. Both reprocessing and newly mined material will use the same crushing circuit, heap leach pad, ADR plant, power supply equipment, assay lab, machine shop, warehouse, office, camp facilities and other assets.” said CEO Janet Lee-Sheriff.
“Key to this evolved strategy is the Phase 1 assessment that the original heap leach pad is in excellent condition for early reuse.”