Through its 79%-owned Russian subsidiary,
The financing consists of a US$25-million loan from Hypo Vereinsbank and Standard Bank plus a US$10-million loan from the World Bank. These loans are expected to finance the remaining construction costs. To date, Bema has spent about US$10 million on construction, having raised the money through equity.
The mine is projected to crank out 113,000 oz. gold-equivalent annually over the first five years of its 9-year life.
Total operating cash costs, including royalties, are estimated at US$93 per oz. gold-equivalent. The figure was calculated using a gold price of US$280 per oz. and a silver price of US$5.50 per oz.
The after-tax internal rate of return is 43%. Bema estimates that the total capital requirements, including working capital and financing fees, will be US$40 million.
A high-grade epithermal vein-type gold-silver deposit, Julietta contains proven, probable and possible reserves of 1.1 million tonnes grading 20.1 grams gold and 340 grams silver per tonne; this translates into a contained resource of 734,000 oz. gold and 12.4 million oz. silver.
The deposit will be mined using mechanized cut-and-fill methods at the daily rate of 350 tonnes. Plans call for the use of conventional flotation, with cyanide leach of the concentrate and Merrill-Crowe precipitation.
Underground development is in progress, and all foundations and grade beams for the mill are reportedly finished. Startup is scheduled for the fourth quarter of 2001.
Bema says Julietta has the strong support of both the Magadan government and the Russian federal government.
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