The phase-one final feasibility study on the Andacollo Gold project in Chile was recently completed by consultants Bechtel Corp. The study indicates the open pit heap leach project, which is owned by Dayton Developments TSE), would be profitable at a mining rate of 12,000 tons per day.
Phase-one minable reserves are estimated to be 22.8 million tons grading 0.036 oz. gold per ton. Overall metallurgical recoveries are expected to be 72.7% giving the project an annual gold output of about 109,500 tons during the first five years of production.
The capital cost of the project is estimated to be US$31.7 million including US$3 million in working capital. Operating costs are estimated at US$182 per oz. with a capital payback of 1.8 years based on a gold price of US$380 per oz.
Dayton management is reviewing financing proposals for the project. When financing is secured, detailed engineering, procurement and construction are expected to take about 11 months.
Dayton has about 18.6 million shares outstanding on a fully diluted basis.
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