Toronto-listed Golden Shamrock Mines has received a positive feasibility study for its 70%-owned Siguiri I project in Guinea, West Africa.
The remaining 30% of the project is split between the government of Guinea and International Finance Corp.
The study concludes the project hosts a proven and probable reserve of 44 million tonnes averaging 1.68 grams gold per tonne at a cutoff grade of 0.8 gram, the equivalent of 2.37 million contained ounces of gold.
The reserve, minable by open-pit methods, forms part of a measured, indicated and inferred resource totalling 54.8 million tonnes grading 1.65 grams gold.
The resource was delineated following 70,000 metres of drilling in 1995. An additional 30,000 metres have since been drilled.
The study proposes mining both the lateritic cap and saprolitic ore at an annual rate of 6 million tonnes. The waste-to-ore ratio is expected to be 1-to-1, and metallurgical tests indicate gold recoveries will be 92.5%.
The open pit is expected to yield 350,000 oz. in the first full year of operation, before settling to 300,000 oz. per year.
Capital costs, which include the construction of a carbon-in-pulp plant, are projected at US$149.3 million. To fund development, Golden Shamrock is negotiating with a syndicate of investors to raise up to $110 million (Australian). Construction of the plant is to begin in the second quarter of 1997.
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