Pending completion of the required financing, Rea Gold (TSE) plans to proceed with the development of the Mount Hamilton gold project in eastern Nevada.
In completing a due diligence review, Rea has confirmed the vendor’s detailed feasibility study and identified areas for optimum development. The company can buy the property for US$5.2 million subject to a 2.5% net smelter return. The capital cost of a 1.2-million-ton-per-year heap-leach operation is projected to be a further US$12 million.
Minable reserves are estimated at 9 million tons grading 0.052 oz. gold and 0.37 oz. silver per ton within two separate zones. The zones are open in several directions and Rea believes there is potential to augment reserves. The feasibility puts cash production costs at about US$260 per oz. and yearly production at 50,000 oz. gold and 193,000 oz. silver.
All major environmental permits are in place and production could begin as early as the fourth quarter.
The company is now holding advanced discussions with several national brokerage firms to raise financing.
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