Goldbelt gets feasibility on Inata

Goldbelt Resources (GLD-T) has finished a feasibility study for its Inata project in Burkina Faso.

In Toronto on Oct. 4 the day the announcement was made — the companys shares were off 8% or 9 on roughly 60,000 shares traded on a day when gold prices fell roughly US$5 to US$725.50.

The study, done by London-based GBM Minerals Engineering Consultants, outlines 2.25 million tonnes per year mill throughput, by way of a cyanide-in-leach process plant and puts cash costs at US$336 per oz.

With a US$650 per oz. gold price the project will reach its payback point by the latter part of the second year of its seven year mine life.

The Internal Rate of Return (IRR) for the project is 49.75% and the undiscounted net present value is US$128 million.

The final numbers on in situ gold reserves is 944,000 oz. with 893,000 oz. slated to be recovered a 94% recovery rate.

Initial capital costs are estimated at US$77 Million, with sustaining capital coming in a US$10.8 million.

The project, which includes the main Inata deposit and the nearby Sayouba and Minfo deposits, has a measured resource of 5.2 million tonnes grading 2.3 grams gold for 378,480 oz and in the indicated it has 19.8 million oz. grading 1.6 grams gold for 1,018,450. It has another 7.1 million tonnes grading 1.3 grams gold for 297,910 oz. in the inferred category.

Resources were calculated using a 0.5 gram per tonne cut off.

Goldbelt says mining will be done using conventional drilling, blasting, loading and hauling procedures and technology suitable for a medium sized open pit mine. The overall strip ratio for the project will be 6.9:1.

In 2006, Goldbelt bought the Brocks Creek process plant in the Northern Territory, Australia. After buying, dismantling and refurbishing, the plant will cost US $4.2 million.

The plant has already been dismantled, and will be refurbished before being shipped to Ghana.

Goldbelt is planning to increase the plants 1.5 million tonne per year threshold to 2.25 million tonnes by buying another ball mill. The mill is in South Africa will be bough and refurbished for $960,000.

For water, the company plans to build a water dam roughly 18 km east of Inata. The dam is scheduled to be done before the start of the 2008 wet season.

Other infrastructure projects include a 35 km gravel road and a 1.5 km airstrip for accessibility.

Power will come from a 6.8 mega watt heavy fuel oil power station with a capacity of 10 megawatts and a 4 mega watt diesel fueled backup plant.

While the companys 2005 environmental impact study was approved in 2006, an updated study, reflecting the current project information, will be sent to the government for registration.

Goldbelt says nearly $2 million has been allocated for rehabilitation of the mine site after the mine is closed.

Financing will come from a debt facility for up to $50 million from Macquarie Bank, and says a variety of hedging programs are being reviewed and considered. In its release the company says it is currently considering strategic partnerships to help develop the project, but has made no firm decision on the matter.