CANADIAN Mining Company, Goldsource Mines Inc., has reported that site preparation for its 100 tonnes per hour gold processing plant for mining at Eagle Moutain in Mahdia, Region 7 (Cuyuni/Mazaurni) is 95 % complete.

The plant itself, designed and constructed by Sepro Minerals Systems Corp., Langley, Vancouver, British Columbia has been acquired and is in Guyana awaiting completion of site preparations.

The company said this development, along with other construction works on schedule, indicates that it is well on its way towards initial staged production by the end of this year.
“As planned, the company anticipates commissioning for Phase I production to take place during Q4, 2015 (by the end of this year). Phase I contemplates a 1,000 tonnes per day open pit – gravity plant with estimated pre production capital costs of US$4M to US$5M and post-commissioning cash operating costs of US$500 to US$600 per ounce of gold.

A Preliminary Economic Assessment (PEA) done in 2014 had stated that the Eagle Mountain Gold Project has an existing resource of 188,000 ounces of gold (Indicated) and 792,000 ounces gold (Inferred), with strong potential to expand its resources.

Based on limited metallurgical test work, gold recovery is estimated at 60% using gravity methods alone. Should the actual recovery be as low as 50%, the project is expected to remain quite profitable with an IRR of 43%. The PEA noted too that at a gold price as low as $1,100 per ounce, the project is expected to remain quite profitable with an Internal Rate of Return (IRR ) of 49%. With an increase in operating costs of more than 30%, the project is also projected to remain quite profitable with an IRR of 30%.
The estimated pre-production capital costs of US$4M to US$5M had been revised down from the stated pre-production capital costs of US$5.9M. The company disclosed that other significant construction activities on-going on site includes rehabilitation of the existing 10 kilometre road between Mahdia town and Eagle Mountain camp including construction of eight new bridges (85% completed).

Road completion was delayed for several weeks due to heavy seasonal rains but will pick up now that the dry season has started. Recruitment of key operations personnel is 60% completed; site preparation of upgraded camp, plant, tailings area and initial mining area (50%) completed; procurement & purchase of major equipment including a dozer and two new 500 KVA generators (90% completed); procurement & purchase of secondary processing plant for exploiting existing old tailings area with potential residual gold recovery /preliminary testing underway).
Yannis Tsitos, President of Goldsource Mines Inc. stated, “We are pleased with Eagle Mountain’s construction progress with the on-going shipments to site of the processing plant and equipment and the testing of the secondary aggregate plant with possibly residual gold production. We fully expect to deliver the Phase I construction on time and budget for Q4, 2015.”

By Clifford Stanley