Vancouver — An updated resource estimate on
Timmins-based Reddick Consulting tabled a total measured resource of 5.8 million tons grading 0.09 oz. gold per ton, based on a cutoff grade of 0.05 oz. gold. This is a marked improvement on the 20.5 million tons grading 0.05 oz. gold used in the 1998 scoping study.
The recent study calls for a preliminary feasibility study; if the study is favourable, additional drilling or bulk sampling would be required to verify the gold grades.
Golden Goose has been trying to advance the project for several years, and is now considering the economic potential of a heap-leach, open-pit operation. Previous production targeted narrow, high-grade veins.
In the 1998 scoping study, the heap-leach proposal lowered the projected capital cost to $69.9 million, compared with $110.6 million for conventional milling. The operating cost of producing 1 oz. gold held steady at US$191.
In 1999, metallurgical tests showed that the gold recovery could be increased to 84% by crushing the ore-bearing material to minus 1.7 mm. However, this approach would also push up the capital cost, to US$147 million for conventional milling and to US$88-97 million for heap-leaching.
The junior says that, in light of the tonnage and higher grade of the resource estimate, the prospects of capitalizing on the property are substantially enhanced.
Be the first to comment on "Magino gets resource boost"