Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
Colorado-based miner Golden Minerals (TSX: AUMN) has reported positive findings in a preliminary economic assessment (PEA) and updated mineral resource estimate for the Velardeña properties, its wholly owned silver and gold project located in Durango state, Mexico.
Tetra Tech, the engineering company responsible for preparing the PEA, assigned the project a pre-tax net present value of approximately $86 million and a possible internal rate of return of 138% after one year.
The PEA envisions a ten-year mine life for 188,000 ounces of gold and 12.3 million ounces of silver contained in the resource
Total pre-production capital cost of the project is estimated at $10.2 million, with a pre-production development time of one year. The post-production sustaining capital needed will be nearly $16 million.
The PEA envisions a ten-year mine life for 188,000 ounces of gold and 12.3 million ounces of silver contained in the resource. Average gold grade achieved over life of mine is anticipated to be 5.15 g/t, while average silver grade is expected to be 337 g/t.
The project also has 33 million pounds of contained lead and 40 million pounds of contained zinc, grading 1.32% and 1.63% respectively.
Shares of Golden Minerals rose by 20% at Thursday’s market close following the latest PEA results. The company has a market capitalization of C$39.4 million.
Also on Thursday, the company said that the oxide mill at Velardeña would continue to operate despite certain business restrictions being implemented in Mexico in response to the covid-19 situation.
