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Spanish Mountain Gold Announces Results of Preliminary Economic Assessment for Phase 1 Project
Vancouver, British Columbia--(Newsfile Corp. - October 23, 2019) - Spanish Mountain Gold Ltd....
About this update from Spanish Mountain Gold Ltd.
[{"type":"text","content":"Spanish Mountain Gold Announces Results of Preliminary Economic Assessment for Phase 1 ProjectVancouver, British Columbia--(Newsfile Corp. - October 23, 2019) - Spanish Mountain Gold Ltd. (TSXV: SPA) (the \"Company\") is pleased to announce the results of the Preliminary Economic Assessment (the \"PEA\") for the high priority near-surface Phase 1 Project of the 100% owned Spanish Mountain gold project (the \"Project\") located in central British Columbia, Canada. The PEA, the commencement of which was announced in a news release dated September 10, 2019, has been prepared in accordance with NI 43-101 Standards of Disclosure for Mineral Projects.As disclosed in the September 10, 2019 news release, the PEA is based on a 10,000 tonnes per day (tpd) mill rate to process the near-surface Measured and Indicated Resources within an open pit focussed on the central higher-grade resources within the deposit. As a stand-alone operation spanning more than a decade, the PEA envisages a low-cost, owner-operated open pit mine processing 39 million tonnes of material at an average diluted grade of 1.00 gram/tonne gold (g/t Au). The process involves a three-stage crushing circuit followed by a ball mill to produce a relatively coarse grind of 180 micron which is then concentrated by flotation to produce a concentrate for fine grinding and cyanidation at an overall gold recovery of 91%. Highlights of the PEA are as follows (all amounts are in Canadian dollars unless otherwise indicated; base case is stated using a gold price of US$ 1,275 per ounce and an exchange rate of $C1.00 equal US$0.75): This first phase of operation has a mine life of 11 years with peak production of 130,000 ounces per annum (Year 4) and an average LOM annual production of 104,000 ounces of gold for a total of 1,145,000 ounces Initial capital is estimated to be C$364M (or US$273M), which includes a contingency of C$42M. Sustaining capital over the life of the mine is estimated to be C$58M Average metallurgical recovery of gold is 91% Selected operational and cost metrics are shown in the table below: Units Years 1 - 5 Avg. LOM Avg. Gold grade g/t 1.13 1.00 Recovery % 91 91 Annual Gold Production koz 116 104 Cash Cost/ oz US$ 481 511 All-in-sustainable Cash Cost/ oz US$ 519 549 Total Cost/ oz US$ 776 807   Economic results at various gold prices are shown in the table...