The George Lake project of Arauco Resources (ARU-T) has reached the feasibility stage.
Arauco has engaged H.A. Simons to conduct a feasibility study on the project, which is in the Kitikmeot region of the Northwest Territories. The study will examine the feasibility of building a mill on site, as well as shipping ore to a nearby facility.
A prefeasibility study by Arauco indicated that gold could be produced at an operating cost of US$242 per oz. by trucking ore 160 km over winter roads to the Lupin mill of Echo Bay Mines (ECO-T). Upfront capital requirements are estimated at $63 million, and it is estimated the operation would produce 170,000 oz. gold per year. Other studies, however, have indicated that building a mill on site would reduce operating costs to below US$200 per oz.
An environmental impact study is also under way. Both studies are to be completed by the end of the year.
Arauco also reports that it has completed the first 64 drill holes (8,000 metres) at George Lake. The focus of the program so far has been infill drilling, designed to place a portion of the project’s gold resource into the proven and probable category. Assays will be released later in June. A second program, designed to increase the resource by testing other targets, is scheduled to begin shortly. At least 12 high-priority targets will be tested.
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