Vancouver — The feasibility study of the Nalunaq gold deposit in Greenland calls for initial offshore processing of ore, reports
The study concludes that offshore processing would generate immediate cash flow and enable Crew to expand the resource with minimal capital outlay.
An initial mining rate of 350 tonnes per day would 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.
The high-grade nature of the Nalunaq material, coupled with the mine’s proximity to navigable waters, allows for the expansion of the resources by means of the revenue generated from offshore processing. Also, shipping the mined material would minimize environmental damage and provide jobs to the local community.
The project will be financed through a previously announced US$8-million credit facility with Standard Bank London plus the net revenue from the processing of ore currently stockpiled (equivalent to about 20,000 oz. gold).
Comprising 1,080 sq. km, the Nalunaq property hosts a high-grade, narrow-vein, underground deposit. It is 40 km from the village of Nanortalik on the southern tip of Greenland, and 6 km from tidewater. Crew acquired its stake in the project in late 1999 through a merger with Mindex of Norway. The remaining 33% is held by NunaMinerals, which is owned by the Greenland government.
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