A prefeasibility study of the Salvadorean project known as El Dorado concludes that the surrounding district has the potential for “significant increases” in gold reserves.
Operator Mirage Resource (TSE) reports current minable reserves as being 3.7 million tonnes grading 6.04 grams gold and 44.19 grams silver per tonne.
This is sufficient to sustain a mining and treatment rate of 1,500 tonnes per day for a minimum of seven years.
The ore will be mined from underground at El Dorado and La Coyotera North zones, and by open-pit methods at the Nueva Esperanza.
Mirage projects output of 121,500 oz. gold-equivalent in the first year of production, 102,400 oz. in the second year, and 87,100 oz. for years three to seven.
The cash cost of production per gold-equivalent ounce would be US$136 in year one and an average of US$189 for years two through seven. The capital cost through to production would be about US$54 million, including expenditures for mine equipment, development, treatment plant, power plant and infrastructure.
The report advocates the declines be used to gain access to El Dorado and La Coyotera North, and that sub-level open-stoping be the main mining method employed.
Kinross Gold (TSE) retains a back-in right to acquire half of the project.