Argonaut PFS proposes 80 000 gold-equivalent ounce mine
The prefeasibility study (PFS) has demonstrated that the Cerro del Gallo (CDG) project, east of Guanajuato City, Mexico, will be a long-life asset that supports owner Argonaut Gold’s strategy to transform from a high-cost producer to a lower-cost producer.
The PFS proposes a 15.5-year operation producing about 80 000 gold-equivalent ounces a year, comprising 64 000 oz/y of gold, 1.30-million ounces a year of silver and 2 400 t/y of copper.
The estimated cash costs and all-in sustaining costs are $597/oz of gold sold and $677/oz of gold sold respectively.
"CDG increases Argonaut's proven and probable gold mineral reserves by 48% and, through the work detailed in the PFS, provides Argonaut with a low operating cost, heap leach project with an after-tax NPV5% of $175-million at $1 350 gold and $16.75 silver and $222-million at $1 450 gold and $18.00 silver,” said president and CEO Pete Dougherty.
CDC has a measured and indicated resource of 201.9-million tonnes at 0.44 g/t gold, 12.2 g/t silver and 0.09% copper.
The study estimates that $134.2-million in preproduction capital would be required, as well as $11.1-million for working capital and $39.2-million for sustaining costs. The total life-of-mine capital cost is $184.6-million.
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