President Richard Scratch says, based on the results of an engineering study prepared by Kilborn Ltd., management is confident such an operation could produce an after-tax rate of return of 18% over a 7-year mine life with a payback of capital in about three years.
This operation envisages early mining of zone 1 with accompanying development of zone 2 to provide sustained mill feed. Development work in zones 1 and 2 is expected to lead to an upgrading of reserves. Continued exploration of the property is expected to increase the tonnage as well.
On-going engineering work is expected to be completed in 2-3 months. Scratch says a production decision will be made based on the final results of that work.
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