Fiore Gold (TSXV: F; US-OTC: FIOGF) has completed a preliminary economic assessment (PEA) for its Gold Rock project in Nevada and provided an updated mineral resource estimate and a base case assessment for developing the project as a satellite open-pit operation that will share significant infrastructure and management with the company’s Pan mine, 12 km away.
Gold Rock’s indicated resources increased by 69% to 403,000 oz. gold, while inferred resources were estimated at 84,300 oz. gold.
The PEA set the mine life at 6.5 years with total gold production of 362,750 oz., averaging 55,800 oz. annually. Life of mine (LOM) cash costs were calculated at US$903 per oz., with LOM all-in sustaining costs (AISCs) at US$1,008 per ounce.
The study forecast pre-production capital expenditures of US$64.6 million, sustaining capital expenditures of US$7 million and reclamation costs of US$16 million.
The early-stage analysis also identified opportunities to enhance the project economics as Gold Rock advances to the feasibility stage through drilling to increase resources, further metallurgical testing to improve recoveries, and geotechnical drilling aimed at reducing the strip ratio.
“This PEA represents the first-ever economic and technical analysis of mining at Gold Rock and shows the project can deliver solid returns for modest capital investment. Gold Rock would be built and run by the same Fiore technical team who transformed the adjacent Pan mine into one of the most successful small gold mines in Nevada,” Fiore’s CEO, Tim Warman, said in a statement.
“Leveraging the management talent and infrastructure already in place at Pan offers a number of capital and operating synergies, and the shared mine administration and management will lower the G&A burden for both projects.”
Fiore expects to issue a resource update and new life of mine plan for Pan in the second half of this year.
— This article first appeared in our sister publication, MINING.com.