Vancouver — An open-pit design of
Based on prices of US$300 per oz. gold and US$5 per oz. silver, the Main deposit has a resource of about 67.2 million tonnes grading 0.96 gram gold and 53.6 grams silver per tonne, equivalent to 2.08 million contained ounces gold and 115.8 million contained ounces silver. About 80% of the portion of the Main zone in the open-pit area is now classified as measured and indicated.
Annual production is pegged at 138,359 oz. gold and 6.27 million oz. silver at a stripping ratio of 4.2-to-1; the mine is expected to last 13 years; and the cash cost of producing an ounce of gold-equivalent is projected at US$149.
The project, in Chihuahua state, is expected to generate an internal rate of return of 22.6% at prices of US$275 per oz. gold and US$4.75 per oz. silver. Capital costs weigh in at US$77 million.
At a gold price of US$200 per oz. and a silver price of US$4 per oz., the resource is estimated at 59.7 million tonnes grading 0.94 gram and 55 grams, respectively (1.81 million contained ounces gold and 105.6 million contained ounces silver). The corresponding stripping ratio would be 3.7-to-1, with cash costs averaging US$141.9 per oz. gold-equivalent.
Using prices of US$275 per oz. for gold and US$4.75 per oz. for silver, the internal rate of return slips to 22%. Capital cost estimates remain at US$77 million.
A total of 230 drill holes (61,000 metres) has defined a measured, indicated and inferred resource for Dolores of 100.1 million tons grading 0.76 gram gold and 40.3 grams silver per tonne. This is equivalent to 2.4 million contained ounces gold and 129.7 million contained ounces silver, using a cutoff grade of 0.3 gram gold-equivalent per tonne.
The project centres on a past-producing camp from which about 300,000 oz. gold and 14 million oz. silver were produced between 1906 and 1929. Additional infill drilling is required to advance the open-pit-minable resource to final feasibility.
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