TORONTO (miningweekly.com) – Project developer Red Eagle Mining has placed all process and infrastructure equipment orders necessary to complete the construction of its San Ramon gold mine, in Colombia.
The TSX-V-listed company said deliveries would start in January and continue through March 2016.
The company had also awarded all construction contracts, allowing civil and concrete works contractors to start setting up the site set and to collar the underground decline.
"Accomplishing these significant milestones brings us one step closer to production. Most importantly, all equipment purchases and contracts have been executed within budget,” COO Bob Bell stated on Wednesday.
The San Ramon underground mine project formed part of the 100 km² historic Santa Rosa gold project, where gold mining predated the seventeenth century, when an estimated 30-million tonnes of ore were mined.
According to an October 2014 feasibility study, the 1 000 t/d operation would produce, on average, 50 000 oz/y of gold over an eight-year mine life.
The project’s reserves stood at 2.42-million tonnes, grading 5.2 g/t gold for 405 000 oz.
Assuming a long-term gold price of $1 300/oz, the project’s net present value, at a 5% discount, was $104-million, with an internal rate of return of 53% and a payback period of 1.3 years.
Production was expected to start in the second half of 2016.