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PULL QUOTE: Commissioning of the mine and plant for production is targeted for the third quarter of next year.
Sacre-Coeur Minerals Ltd, a Canadian mining company engaged in the acquisition, exploration and production of gold and other metals in Guyana, has reported metallurgical test hole results from the company’s Million Mountain Zone 1 resource, saying the results are encouraging in terms of grades. The Million Mountain Project is a gold deposit located in the County of Demerara, west-central Guyana about 100 air kilometers southwest of Georgetown. Current access is by road (7 to 9 hours) or speedboat and road (4 to 5 hours) from Georgetown. In periods of high water, riverboats can reach Million Mountain by using the Puruni River.
| Based on its internal analysis at Million Mountain Zone 1, using a base case gold price of $1,500 an ounce, Sacre-Coeur is looking at a net present value of $145.5 million from the project at a discount rate of 5 per cent, and an Internal Rate of Return (IRR) of 123 per cent, Chief Executive Officer (CEO) Gregory Sparks disclosed.
He added: “The economics of this project are quite robust all the way down to $1,000 for an ounce of gold.”
The holes on which the results are based, were drilled to collect samples for metallurgical testing, as part of the feasibility study that is currently underway for the project.
The company said Thursday that while the average of the metallurgical test holes cannot be considered representative of the resource body, the results are encouraging as the length weighted average of 3.08 grams per tonne (g/t) gold is significantly greater than the saprolite hosted portion of the NI 43-101 compliant resource at 1.026 g/t gold.
In particular, the 42.8 metres grading 10.56 g/t gold is considerably higher than predicted by the resource model for this area, said Sacre-Coeur.
Saprolite is a layer of loose soil and broken rock covering solid rock.
NI 43-101 (National Instrument 43-101) is a set of reporting and disclosure standards imposed by regulators on Canadian listed mining and exploration companies that govern how issuers report scientific and technical information about their mineral projects to the public anywhere in the world.
It covers oral statements as well as written documents and websites, and it requires that all disclosure be based on advice by a “qualified person”.
Sacre-Coeur said in its statement: “The company is very pleased with the early results from the studies in support of the feasibility study for development of its Million Mountain Zone 1 resource. To date, all results have been as good as or better than projected based on the company’s internal analysis.”
Owing to the positive results of Sacre Coeur’s own internal analysis, the company decided to move directly to a formal feasibility study, now being done by Tetra Tech, and it is expected in the third quarter this year.
The report will be followed immediately by a final development decision, as well as by the completion of development financing and the start of construction – should the study lead to a positive result.
Commissioning of the mine and plant for production is targeted for the third quarter of next year.
The Million Mountain Zone 1 deposit, it is said, hosts roughly 500,000 troy ounces of gold as currently tested, including NI 43-101 compliant measured resources of 12.12 million tonnes grading 1.0 g/t gold, and indicated resources of 2.18 million tonnes grading 0.9 g/t gold.
The mining plan for the deposit is to be completed in two phases, with the first phase to be limited to the portion that is saprolitized.
Drilling and blasting is not required to excavate saprolite, and therefore crushing and grinding requirements are less intensive.
The un-weathered portion of the deposit will be mined separately, and will be commissioned at a later date, according to Sacre Coeur’s statement.
SacreCoeur is already in production in Guyana, boasting all-in cash production costs of less than $500 an ounce at its alluvial/alluvial operations.
Sacre-Coeur Minerals Ltd, a Canadian mining company engaged in the acquisition, exploration and production of gold and other metals in Guyana, has reported metallurgical test hole results from the company’s Million Mountain Zone 1 resource, saying the results are encouraging in terms of grades. The Million Mountain Project is a gold deposit located in the County of Demerara, west-central Guyana about 100 air kilometers southwest of Georgetown. Current access is by road (7 to 9 hours) or speedboat and road (4 to 5 hours) from Georgetown. In periods of high water, riverboats can reach Million Mountain by using the Puruni River.
| Based on its internal analysis at Million Mountain Zone 1, using a base case gold price of $1,500 an ounce, Sacre-Coeur is looking at a net present value of $145.5 million from the project at a discount rate of 5 per cent, and an Internal Rate of Return (IRR) of 123 per cent, Chief Executive Officer (CEO) Gregory Sparks disclosed.
He added: “The economics of this project are quite robust all the way down to $1,000 for an ounce of gold.”
The holes on which the results are based, were drilled to collect samples for metallurgical testing, as part of the feasibility study that is currently underway for the project.
The company said Thursday that while the average of the metallurgical test holes cannot be considered representative of the resource body, the results are encouraging as the length weighted average of 3.08 grams per tonne (g/t) gold is significantly greater than the saprolite hosted portion of the NI 43-101 compliant resource at 1.026 g/t gold.
In particular, the 42.8 metres grading 10.56 g/t gold is considerably higher than predicted by the resource model for this area, said Sacre-Coeur.
Saprolite is a layer of loose soil and broken rock covering solid rock.
NI 43-101 (National Instrument 43-101) is a set of reporting and disclosure standards imposed by regulators on Canadian listed mining and exploration companies that govern how issuers report scientific and technical information about their mineral projects to the public anywhere in the world.
It covers oral statements as well as written documents and websites, and it requires that all disclosure be based on advice by a “qualified person”.
Sacre-Coeur said in its statement: “The company is very pleased with the early results from the studies in support of the feasibility study for development of its Million Mountain Zone 1 resource. To date, all results have been as good as or better than projected based on the company’s internal analysis.”
Owing to the positive results of Sacre Coeur’s own internal analysis, the company decided to move directly to a formal feasibility study, now being done by Tetra Tech, and it is expected in the third quarter this year.
The report will be followed immediately by a final development decision, as well as by the completion of development financing and the start of construction – should the study lead to a positive result.
Commissioning of the mine and plant for production is targeted for the third quarter of next year.
The Million Mountain Zone 1 deposit, it is said, hosts roughly 500,000 troy ounces of gold as currently tested, including NI 43-101 compliant measured resources of 12.12 million tonnes grading 1.0 g/t gold, and indicated resources of 2.18 million tonnes grading 0.9 g/t gold.
The mining plan for the deposit is to be completed in two phases, with the first phase to be limited to the portion that is saprolitized.
Drilling and blasting is not required to excavate saprolite, and therefore crushing and grinding requirements are less intensive.
The un-weathered portion of the deposit will be mined separately, and will be commissioned at a later date, according to Sacre Coeur’s statement.
SacreCoeur is already in production in Guyana, boasting all-in cash production costs of less than $500 an ounce at its alluvial/alluvial operations.
