MK Gold permits Las Cruces

Armed with a positive feasibility study by Bechtel International, MK Gold (MKAU-O) is working to bring its Las Cruces copper deposit into production.

The wholly owned project is on the eastern margin of the Iberian Pyrite Belt, 15 km northwest of Seville, Spain. It was acquired from Rio Tinto in the fall of 1999.

Reserves stand at 15.8 million tonnes grading 5.94% copper. An average of 1.2 million tonnes will be mined and processed annually for at least 13.5 years. The open-pit, hydrometallurgical operation is targeted to produce 63,000 tonnes of cathode copper annually, though sufficient capacity exists for this to be increased to 72,000 tonnes. Copper recoveries should average 89% over the mine life.

Capital costs are pegged at US$289 million, while cash operating costs are expected to average US33 per lb.