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Gold Reserve announces improved Brisas Project economics and updates Brisas Project 43-101 Report
Gold Reserve announces improved Brisas Project economics and updates Brisas Project 43-101 Report.
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\n\nSPOKANE, WA, Nov. 13 /CNW/ - Gold Reserve Inc. (TSX: GRZ - AMEX:GRZ)\nannounced the completion of an updated CSA National Instrument 43-101 Report\nfor the Brisas Project. The Report, prepared by Pincock Allen and Holt (PAH)\nincludes updated resource and reserve estimates, capital and operating costs,\nand current project economics.\nThe current operating plan assumes a large open pit mine containing\nproven and probable reserves of approximately 10.4 million ounces of gold and\n1.3 billion pounds of copper in 485 million tonnes of ore grading 0.67 grams\nof gold per tonne and 0.13% copper, at a revenue cutoff grade of $3.04 per\ntonne using a gold price of $400 per ounce and a copper price of $1.15 per\npound. The plan anticipates utilizing conventional truck and shovel mining\nmethods with the processing of ore at full production of 70,000 tonnes per\nday, yielding an average annual production of 456,000 ounces of gold and\n60 million pounds of copper over an estimated mine life of approximately\n18.5 years. The stripping ratio is estimated at 1.96:1.\nThe updated 2006 mine plan extends the mine life to 18.5 years as\ncompared to the 2005 feasibility study mine life of 16 years. Estimated annual\ngold and copper production declined approximately 6% although the estimated\nlife of mine production has increased approximately 10% from 7.59 million\nounces to 8.41 million ounces of gold and copper production has increased from\n997 million pounds to 1.113 billion pounds.\nThis revised 43-101 Report assumes a base-case economic model utilizing\n$470 per ounce gold and $1.80 per pound copper which is derived from the\nhistorical three-year rolling average for metal prices as of September 2006.\nAt such prices, cash operating costs (net of copper byproduct credits) are\nestimated at $126 per ounce of gold. Total costs including cash operating\ncosts, exploitation taxes, initial capital costs (excluding sunk cost), and\nsustaining capital costs are estimated at $245 per ounce of gold. Initial\ncapital costs are currently estimated to be $638 million. All amounts are in\nU.S. dollars.\nDoug Belanger, President of Gold Reserve stated, \"We are very pleased\nwith the results of the updated 43-101 Report. The mining industry has\nexperienced significant increases in capital and operating costs, the Brisas\nProject included. How...