Region 8 ‘Eagle Mountain’ gold project economically viable

AN economic  study   of the viability of the Eagle Mountain gold project near Mahdia in Region 8 (Potaro-Siparuni) has yielded positive results.

Goldsource Mines Inc., the Canadian company conducting exploration,  announced last week that conceptually, the Preliminary Economic Assessment (PEA) results suggest that the project has low capital and operating costs, minimized technical risk, a short development timeline and very attractive rates of return.
Ioannis (Yannis) Tsitos,  President of Goldsource, stated that the company was “extremely pleased” with the PEA results.
He said: “In addition, the inventory of potentially recoverable ounces of gold in the oversize materials and the underlying hard rock resource provide us with a significant ‘blue-sky’ potential for further development. There is strong potential for expansion.”
The   Eagle Mountain project has a resource of 188,000 ounces of gold indicated and 792,000 ounces inferred,  information  previously disclosed  in compliance  with National Instrument 43-101 – Standards of Disclosure for Mineral Projects stipulated by  the Canadian Securities Administrators.
Based on the positive results of the PEA and going forward, he said,   the mineral resource estimates will  be updated, the economic analysis refined and updated, and a mineral reserve statement prepared to a Pre-Feasibility Study (PFS)  level.
The PFS will comprise a comprehensive study of a range of options for the technical and economic viability of the  project which  has reached the stage where a preferred mining method is established and an effective method of mineral processing is determined.
The PFS includes  a financial analysis based on reasonable assumptions   on mining, processing, metallurgical, economic, marketing, legal, environmental, social  and governmental considerations.
Moreover,  the evaluation of  any   other relevant factors are sufficient for a qualified person to determine if all or part of the mineral resource may be classified as a mineral reserve – a classification which encourages a higher level of confidence in the economic potential of a project.
Goldsource Mines Inc.,  Tsitos said, is working aggressively to develop its advanced-stage, 100%-owned Eagle Mountain gold project in Guyana towards initial stage production in 2015.

(By Clifford Stanley)