A recently signed memorandum of understanding with Richmont Mines (RIC-T) outlines the terms of a custom milling deal that would see high-grade ore from Crew Development‘s (CRU-T) 82%-owned Nalunaq gold deposit on the southern tip of Greenland processed at Richmont’s Nugget Pond mill in Nfld.
Under the deal, 10,000-dry-tonne batches of ore from Nalunaq would be processed at a fixed per-tonne unit cost. Crew will contribute a modular gravity circuit installed at the front end of the mill’s processing circuit, and will be responsible for delivering the ore to the mill.
Milling will initially target Nalunaq’s stockpile, which is reported to contain about 28,000 oz. of gold. Once the stockpile is depleted, Crew will have the option to use the mill’s excess capacity for three years beginning in 2004.
Nalunaq’s feasibility study calls for an initial mining rate of 350 tonnes per day to produce about 90,000 oz. gold per year at a total cash cost of US$169 per oz.
Measured and indicated resources stand at 596,600 tonnes grading 20.6 grams gold per tonne; inferred resources, at 378,000 tonnes grading 15.7 grams gold.
Total capital requirements are estimated at US$9.7 million for offshore processing, plus US$25.6 million for a later, on-site processing plant.
Financing of the project will come via a US$8-million credit facility with Standard Bank London plus cash from the processing of stockpiled ore.
Encompassing 1,080 sq. km, the Nalunaq property hosts a high-grade, narrow-vein, underground deposit. It is 40 km from the village of Nanortalik, some 6 km from tidewater. The remaining 18% of Nalunaq is held by NunaMinerals, which is owned by the government of Greenland.
Be the first to comment on "Nalunaq ore headed south"