Final feasibility work on the Goldfields project, near Uranium City, Sask., suggests that production from the project’s Box and Athona deposits will have an operating cost of US$212 per oz.
Owner Greater Lenora Resources (TSE) reports a minable reserve of 16.6 million tonnes with a cut grade of 1.7 grams gold per tonne and 900,000 oz. of contained gold.
Consultant H.A. Simons Ltd. estimates a capital cost of $66.1 million, against estimates in prefeasibility studies of $50 million. Earlier estimates on unit production costs had been around US$215.
The consultant has recommended a combined gravity and flotation process for milling, and predicts recovery rates of around 91%. The feasibility report further recommends investigating underground operations at the Box deposit, and increasing mining and milling rates to increase cash flow. Simons also recommends investigating the potential for more reserves at the Athona deposit and revising the pit design to incorporate more reserves.
Mineralization encountered in another 24 drill holes at the Box deposit is not included in reserve estimates, nor is mineralization encountered in three zones at the Athona deposit. Outside exploration is concentrating on five occurrences around the proposed mill site.
Results of the feasibility study have been distributed to various mining companies, and Greater Lenora is exploring possible agreements to bring the deposit to production.
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