Vancouver – An updated independent reserve estimate for Red Back Mining’s (RBI-V) Chirano gold project in Ghana, West Africa, has outlined over 1 million ounces gold which would increase the mine life to 8 years. The estimate pegs proven and probable reserves for Chirano at 17.8 million tonnes grading 1.9 grams gold per tonne for 1.09 million contained gold oz.
Red Back’s 95%-owned Chirano gold mine is situated about 15 km south of AngloGold-Ashanti’s (AU-N) multi-million oz. Bibiani gold mine in southwestern Ghana.
The new reserve estimate, done to JORC code, is based on the latest resource estimate and adds 161,000 oz. to the tally used in the bankable feasibility study. The estimate is based on the latest resource model, revised operating costs and engineered pit designs using a US$375 versus a US$325 gold price. The waste to ore ratio decreased to 3.1:1 — a 20% decline improving the economics of the proposed mine.
Earlier this month, new drilling increased the resource by 22% in the measured and indicated categories to 28.82 million tonnes grading 2.0 grams gold. There are another 509,000 oz. in the inferred category which will be the focus of more infill drilling.
The project was awarded an Environmental Permit in April this year as well as a 15-year mining lease that covers 36.3 square km which contains a 22-km strike length of the Chirano and Bibiani shear zones.
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