Sundust acquiring Peruvian interest

Agreement-in-principle has been signed between Sundust Resources (ME) and Aurifera El Sol of Peru which will allow Sundust to acquire a 30% interest in the latter for $1.5 million(US).

Aurifera, formerly Texusgulf Peru S.A., owns a placer gold deposit in the country’s Madre de Dios region with reserves of more than 200 million cu m. Sundust’s partners in the project will be Texusgulf Minerals and Metals and a group of Peruvian companies and businessmen.

Production at the project is set to commence in mid-1989, Sundust says. Estimated annual production is 10,450 oz, based on an 80% dredge utilization rate and a 76% gold recovery rate. Estimated production cost (including administration expenses and amortization) is $183(US) per oz.