Nov 9, 2017 @ 11:02
Argonaut Gold who has been working to reopen their 100% owned Magino gold project has released their feasibility study with an estimated total production of 2 million ounces of gold.
They have been developing an open pit mine, and have reduced their orginal 30,000 tonne per day (t/d) project to a 10,000 t/d. This reduction will reduce the initial capital requirement, and allow for future expansion. Costs per ounce is estimated to be $711, with average gold production of 123,000 oz. per year over the 14-year life of the mine.
Pete Dougherty, President & CEO stated: “We believe this FS demonstrates that Magino is a strategic, long-life asset in an attractive mining jurisdiction, Ontario. We have been able to appropriately scale the Project to a manageable capital number while providing the optionality of expanding the scale of the project in the future either through operational cash flow during Magino’s life or through a potential joint-venture partnership. The 10,000 tonne per day project reports an average grade of 1.4 g/t Au during the first five years and 1.2 g/t Au during the 14 years of active mining. With a strong cash position, zero debt and the expectation of solid cash flow from our Mexican operations as we execute on our 60% production growth plan between 2017 and 2019, we feel that the $321 million initial capital estimate is a manageable investment for the Company, at the right time, given our ability to add debt capacity at either the corporate or project level and the cash flow anticipated from our Mexican operations. We have also been mindful when developing mine plans and designing the process facility not to sterilize the ore body and ensure proper space is available should economics warrant an investment to expand the Project to 30,000 tonnes per day in the future. Given our internal growth profile, we are focused in the near term on that growth. Decisions on Magino will be made when and if it is appropriate. The size, location, economics and expandability of Magino give Argonaut significant flexibility to explore options around the Project on its own or with partners.”