Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Spanish Mountain Gold is aiming to release a pre-feasibility study (PFS) for its flagship, wholly-owned Spanish Mountain project in the province’s Cariboo region in the first quarter of 2021.
After closing a C$5-million non-brokered private placement with Eric Sprott in late July, the company is now looking to complete a field program this summer as work proceeds on the study. The PFS will target a first-phase development of the deposit, focusing on its near-surface and higher-grade portions.
“I believe the success of our latest financing is a strong endorsement for our project strategy and highlights the potential value of our multi-million ounce gold resource,” Larry Yau, Spanish Mountain’s CEO, said in a release.
Total resources at Spanish Mountain include 273 million measured and indicated tonnes grading 0.47 g/t gold, containing 4.1 million oz., with a further 53 million inferred tonnes at 0.37 g/t gold, containing 600,000 oz
In December of last year, the company completed a preliminary economic assessment for the first-phase development of Spanish Mountain, which outlined a 10,000 t/d, 11-year operation, producing an average of 104,000 oz. of gold annually at average all-in sustaining costs of $549 per oz. Based on a total initial capital cost of C$363.8 million, the after-tax net present value estimate for this development comes in at C$325 million, at a 5% discount rate and a $1,275 per oz. gold price.
Total resources at Spanish Mountain include 273 million measured and indicated tonnes grading 0.47 g/t gold, containing 4.1 million oz., with a further 53 million inferred tonnes at 0.37 g/t gold, containing 600,000 oz. These resources are based on a 0.15 g/t gold cut-off.
(This article first appeared in the Canadian Mining Journal)
