Great Basin boosts Ivanhoe (February 18, 2002)

Vancouver — The jump in the price of the yellow metal has prompted Great Basin Gold (GBG-V) to increase the net present value forecast for the Ivanhoe property in Nevada’s Carlin trend.

Based on the current metal price of US$300 per oz. gold and US$4.40 per oz. silver, the value of the project is now estimated at $203 million. Using a discount rate of 6%, the value drops to $157 million.

Based on an inferred mineral resource of 719,000 tons grading 1.29 oz. gold and 7 oz. silver per ton, the Hunter-Dickinson-led junior envisions a 5-year underground mine producing 600 tons per day, with ore sent to a local mill. Accordingly, annual production would be 170,000 oz. gold and 920,00 oz. silver.

Cash costs are pegged at US$114 per oz. gold-equivalent, with total costs slated at US$134 per oz. gold-equivalent. The economic model uses 50% mining dilution and carbon-in-leach processing with recoveries of 95% for gold and 90% for silver. Underground mining costs are estimated at US$55.50 per ton, with toll-milling charges in the range of US$25 per ton. Capital costs for the proposed mine are about US$22 million.

The Ivanhoe property is between Franco-Nevada Mining’s Ken Snyder mine and Barrick Gold’s Goldstrike operation.

In recent years, Great Basin has focused on high-grade, gold-silver veins below and adjacent to the low-grade, disseminated Hollister deposit, which was previously mined as an open pit.

Print

Be the first to comment on "Great Basin boosts Ivanhoe (February 18, 2002)"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close