A private Newfoundland-based company, Raymo Processing, has carried out a preliminary feasibility study into construction of a 500-tonne-per-day, indoor, vat leaching plant to process the Rambler mine tailings.
The 3.8 million tonnes of tailings, averaging 1 gram gold per tonne, are on the Baie Verte Peninsula in north-central Newfoundland. The eastern portion of the tailings contains a proven reserve of almost 1.2 million tonnes averaging 1.7 grams (equivalent to 63,600 oz.).
The leaching process was developed by NovaGold Resources (TSE) and enables low-grade gold deposits to be mined more profitably. Raymo has agreed to grant NovaGold a 1% net smelter return royalty for the use of the process. NovaGold also holds a 3% net smelter return royalty.
Capital costs are projected at $1.5 million, and the project is expected to generate a before-tax profit of $11.9 million.
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