Production anticipated for Mantua project

A production decision for the Mantua open-pit, gold-copper project in Cuba is pending now that a final feasibility study has been approved by the joint-venture partner of Northern Orion Explorations (VSE).

Ownerhship in the project is split equally between Northern Orion and Geominera, a government-owned corporation. A shallow, gossanous cap containing a minable reserve of 2 million tonnes grading 1.44 grams gold and 11.5 grams silver per tonne overlies a supergene-enriched copper zone hosting 11.4 million tonnes of 1.76% copper. The overall stripping ration is 3.62-to-1.

The 2-stage, open-pit operation is expected to yield 80,000 oz. gold by heap-leach methods during the first 18 months of production, followed by 366 million lb. copper cathode over the next 7.5 years by solvent extraction-electrowinning.

Cash operating costs are forecast at US$140 per oz. gold during the first phase of mining and US55 cents per lb. copper recovered over the second phase. Recovery rates for gold are projected at 85%, whereas copper is estimated at 82%. The mine will operate at a throughput of 3,000 tonnes per day for the copper phase.

A capital cost estimate of US$72.5 million includes all new equipment purchases, and takes into account a 10% contingency. The partners plan to use the cash flow generated by the initial gold mining phase to reduce the actual cash outlay.

In the meantime, Northern Orion is proceeding with engineering and geotechnical evaluations in anticipation of a production decision, which could be announced as early as March.