A feasibility study on the Nixon Fork gold project in west-central Alaska recommends the project be put in production.
Consolidated Nevada Goldfields (TSE) commissioned consultants Pincock, Allen and Holt to complete the study.
The projected pre-tax operating cash flow is estimated at US$26 million and the net pre-tax cash flow at US$11 million. The figures are based on a 150-ton-per-day operation with a capital cost of US$15.5 million, a gold price of US$375 per oz. and an operating cost of US$147 per oz. Based on existing drilling on 50-ft. centres and a cutoff of 0.29 oz. gold per ton, the minable reserve in the Crystal Garnet and Mystery areas is estimated at 94,100 tons grading 1.42 oz. Gold mineralization is open to expansion both along strike and to depth.
Additional drilling is planned for the second quarter of 1994 in an effort to expand reserves, but mine construction could start as early as the first quarter.
Shrinkage and drift-and-fill stoping would be used, prior to processing in a conventional gravity flotation mill.
Consolidated Nevada is in discussions with banks and financial services companies to raise the capital required for startup.
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