Mongolia Gold Resources (VSE) reports that the Bumbat gold project in Mongolia is expected to generate cash flow of US$7.4 million from revenue of US$33.9 million in just over two years.
Mongolia operates the open-pit, narrow-vein operation, in which it owns a 49% interest. The remainder is held by Mongol Alt, a private company appointed by the Mongolian government.
An updated feasibility study estimates that the capital cost of developing and constructing a 300-tonne-per-day mine and mill will be US$4.3 million.
Mongolia Gold has purchased, and is already shipping, a gravity-and-flotation concentrator to Mongolia. The company plans to leach the flotation concentrate and recover gold in dore on-site using the Merrill-Crowe process.
Minable reserves within 25 metres of surface are calculated at 237,000 tonnes grading 11.91 grams gold per tonne at a stripping ratio of 8.9-to-1. With a 97% gold recovery, Mongolia Gold expects to recover 88,018 oz. at an average operating cost of US$121 per oz. Production is scheduled to start in the third quarter.
The Bumbat project is envisioned as a long-term producer, with future production coming from both shallow pits and underground mining.
A probable geological resource base is estimated at 920,000 tonnes grading 11.7 grams, with a further possible resource of 700,000 tonnes of similar grade.
Be the first to comment on "Mongolia Gold updates feasibility on Bumbat"