A preliminary feasibility study on the Delita gold-silver project in Cuba is now complete.
Miramar Mining (TSE) hired Davy International to conduct the study, which projects yearly output at 98,000 oz. gold and 560,000 oz. silver. The owner expects to incur an average cash operating cost of US$190 per oz. gold over a mine life of 11 years.
The geologic resource in the Delita deposit is estimated at 20.8 million tons grading 0.084 oz. gold and 0.66 oz. silver per ton, including an open-pit minable reserve of 5.2 million tons grading 0.12 oz. gold and 0.64 oz. silver.
Underground mining would start in the fourth year of operation and continue concurrently with the open pit operation. Diluted minable underground reserves are estimated at 2.1 million tons grading 0.16 oz. gold and 0.73 oz. silver.
Davy International conducted confirmatory metallurgical testing, estimating gold and silver recoveries at 84.5% and 62%, respectively.
The capital cost of a gravity-flotation mill, together with an autoclave unit, is estimated at US$45 million. A further US$8.7 is earmarked for contingencies, and US$6.2 million will be required for indirect costs, raising the total cost to almost US$60 million.
The next phase of work will include confirmation and fill-in drilling, bulk sampling and pilot milling, all of which is designed to lead to the completion of a bankable feasibility study.
Miramar is selling its Delita and Mantua projects in Cuba to its 51%-owned subsidiary, Northern Orion Exploration (VSE). Miramar expects to receive about 24 million shares in the transaction.
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