Despite a generally positive feasibility study for the Amayapampa gold project in Bolivia, Vista Gold (vgz-x) says mining would be uneconomic unless gold prices rise above US$350 per oz.
The study called for an open-pit project that would produce 73,000 oz. gold during the first years of operation, falling to 52,000 oz. annually for the remaining six years.
Cash costs would average US$122 for the first years, rising to US$184 over the final six years.
Proven and probable reserves are 9.6 million tonnes grading 1.74 grams gold per tonne (or 537,000 oz. gold). The stripping ratio is calculated at 2.7-to-1.
Vista’s president, Michael Richings, says construction could begin as early as January 1998, provided gold prices improve.
Banque Paribas has agreed to underwrite much of the financing for the project. Capital costs are estimated at US$53 million.
The company believes it can greatly enhance the economics of the Amayapampa project by mining higher-grade ore from the nearby Capa Circa deposit.
Meanwhile, the company continues to explore the Guariche gold project in Venezuela.
Highlights from the latest 20 core holes include: 30 metres grading 1.89 grams per tonne; 47 metres of 4.43 grams; 33 metres of 3.28 grams; 34 metres of 2.42 grams; 33 metres of 2.09 grams; and 21 metres of 4.72 grams.
The company had thought the higher-grade intervals were confined to the upper, saprolitic zones, but Richings says the drilling proved the higher grades extend to depths considerably below the saprolite.
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