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Convergent positive on Blue Vein gold project

25th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – A prefeasibility study (PFS) by junior Convergent Minerals has revealed that its Blue Vein mine, in Western Australia, could deliver 128 504 oz of gold over a three-year period.

The project would require a total capital investment of about A$59.8-million, which would include a A$28.7-million cost to initiate underground mining.

The PFS found that the project would generate revenue of some A$179.9-million over its mine life, and would have an estimated net present value of A$10.7-million and an all-in cost of A$1 188/oz.

Convergent told shareholders on Wednesday that the company would progress the Blue Vein project, finalising additional testwork and surveys, which would result in the feasibility study being completed by December this year.

In parallel with this, Convergent would call for tenders for the underground development and the construction of surface infrastructure early in 2015.

Edited by Creamer Media Reporter

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