A prefeasibility study by BLM Bharti Engineering concludes that the Magino gold project, in north-central Ontario, has the potential to be developed into a large-tonnage, open-pit mine.
The project, wholly owned by Golden Goose Resources (GGR-T), is reported to host proven and probable reserves of 20.5 million tons grading 0.05 oz.
gold per ton, or 33.1 million tons of 0.04 oz. gold if lower-grade reserves are factored into the mine plan.
The prefeasibility study suggests the deposit is capable of yielding 125,000 to 250,000 oz. gold per year at cash costs ranging from US$172 to $191 per oz. An 8-year mine life is envisioned, with the daily mining rate pegged at 7,500 tonnes.
Preproduction capital costs are estimated at $110.6 million.
The Toronto-based junior also holds a 75% interest in the Magnacon mine, near Wawa, Ont., which saw limited gold production in the late 1980s.
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