Vancouver — Spurred by high gold prices,
The open-pit, heap-leach mine produced more than 1 million oz. gold and 2 million oz. silver from 1983 to 2004 under previous ownership. Based on a newly updated feasibility study, Vista sees potential to resume operations at Hycroft for an estimated capital investment of US$25.6 million.
The feasibility study, prepared by Reno, Nev.-based Mine Development Associates, includes updated proven and probable reserves compliant with National Instrument 43-101 standards, and calculated within a pit design based on a gold price of US$450 per oz.
Total reserves now stand at 33.3 million tons grading 0.02 oz. gold per ton, or about 662,800 contained ounces. The strip ratio is estimated at 1.52:1 waste-to-ore.
The study also included a new mining plan and schedule, based on mining of 24 million tons per year, to produce 375,400 oz. gold and 1.5 million oz. silver over a 5-year period. Total production costs are projected to be US$351 per oz. gold, including silver credits. The study showed double-digit rates of return at US$450 per oz. gold and US$7 per oz. silver.
Strong gold prices have also prompted the company to update a previous study for the Paredones Amarillos gold project in Baja California, Mexico, where previous owners spent more than US$35 million on exploration and development. The project hosts proven and probable reserves of 53.8 million tons at 0.029 oz. gold per ton, with an estimated strip ratio of 3.48:1 waste-to-ore.
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