VANCOUVER (miningweekly.com) – Project developer Metanor Resources will move quickly with the start-up of operations at its Barry project, in Quebec, after publishing positive results of a preliminary economic assessment on Thursday.
Prepared by GoldMinds Geoservices, the C$8.5-million start-up cost for the project paled in comparison to an after-tax net present value (at 6% discount) of C$25.9-million, and an after-tax internal rate of return of 94%.
“This positive preliminary economic study is an important milestone for Metanor. We will be moving quickly with start-up planned for the summer of 2017, following a feasibility study which will include current drilling results,” president and CEO Ghislain Morin stated.
The project is located 100 km east of Lebel sur Quévillon and 115 km south of the company’s Bachelor mine.
Using a gold price of C$1 560/oz, the payback is 0.71 years, while the all-in production cost is calculated at around C$1 114/oz ($891/oz).
The mine is expected to produce 193 457 oz/y of gold over its nine-year life, at an average rate of 21 495 oz/y, with up to 37 573 oz possible in year two.
The 1 200 t/d ore will be processed at the Bachelor mill, at an average headgrade of 1.75 g/t diluted for the life of the mine, including the first three years at 2.61 g/t, with a metallurgical recovery of 95%.
Metanor noted that the deposit is located on a previously granted mining lease, with the deposit ready for exploitation. It also holds the potential for expansion.
Significantly, there are no streaming agreements covering the Barry project, Metanor added.
The company has, in recent months, been reporting strong exploration results from its flagship producing Bachelor mine, including high gold grades over significant intercepts.