A positive feasibility study on the San Andres gold project in Honduras has Greenstone Resources (TSE) sprinting to a third-quarter 1997 production date.
Based on proven and probable reserves, the study concludes that an open-pit, heap-leach mine built at the site could produce 90,000 oz. gold per year at an average cash operating cost of US$108 per oz.
The low operating cost is a result of excellent metallurgy, coupled with a low waste-to-ore stripping ratio. Metallurgical results indicate a recovery of more than 85% in 45 days of leaching from single-stage crushing. The life-of-mine stripping ratio is estimated at 0.3-to-1.
The feasibility study is predicated on minable reserves of 18.3 million tonnes grading 1.44 grams gold per tonne. The estimated capital cost of the project is US$23 million.
“The better-than-expected results of the San Andres feasibility study will lead to an acceleration of development of the project,” Greenstone President Rudi Fronk stated in a news release. “Greenstone lenders have indicated their willingness to increase existing credit lines, which, when combined with our recent equity financing, will provide all the capital needed to build San Andres.”
Greenstone plans to seek board approval to begin mine development by mid-year, with startup earmarked for the third quarter of 1997.
The San Andres project is wholly owned by a Honduran company which, in turn, is 73.2% owned by Greenstone. The latter also holds options on a further 25.5 %.
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