TVX advances Olympias gold project

Good news keeps pouring in for TVX Gold (TVX-T). The Toronto-based company has received a pre-approval permit for its Olympias polymetallic project in Greece, paving the way for completion of an environmental impact study and engineering design for a gold recovery plant.

The announcement follows news that TVX and Australian giant Normandy Mining (NDY-T) have agreed to explore jointly for gold in the Americas. If concluded, that deal would see TVX relinquish a 49.9% interest in its five gold mines in exchange for US$180 million in cash, a US$150-million line of credit, and Normandy’s subscribing for US$24 million worth of its treasury shares (T.N.M., May 3/99).

Olympias is one of two deposits comprising TVX’s Kassandra project, where underground reserves total about 9.1 million tonnes grading 8.7 grams gold and 138 grams silver per tonne, plus 4.6% lead and 5.8% zinc. Another 300,000 tonnes grading 22.9 grams gold and 24 grams silver are stockpiled, and 2.4 million tonnes grading 3.4 grams gold and 14 grams silver exist as tailings.

The permit lays out the foundation on which Olympias can be developed, including site locations for the process plant and tailings dam.

Both bio-oxidation and pressure oxidation have been proposed as processing techniques for recovering the gold. In the original feasibility study, only bio-oxidation was proposed. That 1998 study is being revised in order to include an updated reserve estimate plus results from 20,000 metres of additional drilling.

Minproc of Australia is assisting in the engineering work for the proposed plant, whereas U.K.-based Knight Piesold is overseeing the design of the tailings dam and reviewing environmental concerns.

In each of its first five years, Olympias is expected to yield 210,000 oz. gold, 2.1 million oz. silver, 50,000 tonnes zinc concentrate and 35,000 tonnes lead concentrate. Cash costs during that period are projected at less than US$100 per oz. (net of byproduct credits).

The project’s life was originally estimated at 15 years, though this is expected to be extended in the revised feasibility.