Gold mining company Abcourt Mines has announced positive results of an independent preliminary economic assessment (PEA) for its Sleeping Giant project, a past-producing mine in the greenstone belt of Abitibi, Quebec.
The PEA envisions a rapid start-up of operations with a minimal investment of C$42-million.
“This project could quickly become the next gold producer in Quebec,” said president and CEO Pascal Hamelin on Wednesday.
The PEA is based on Sleeping Giant producing 30 100 oz/y over 5.8 years.
The study delivered a net present value, using a 5% discount, of C$54.4-million and an internal rate of return of 33.3%.
Hamelin said targeted drilling towards areas with inferred mineral resources could potentially increase resources and some project economics.
“The PEA is considering 50% utilization of our ore processing plant. This new drilling could potentially increase feed capacity and operate the plant at full capacity. This capacity could also allow us to accept material from other deposits such as Discovery and Flordin in the medium term, and potentially increase the value of our assets.”
The next step is to target promising areas to convert inferred to indicated resources for incorporation into a more detailed economic assessment.
“With the potential to add other deposits to the project, we anticipate strong economic potential for the region around the Sleeping Giant plant in the future,” said Hamelin.