TSX-V-listed gold miner Lumina Gold has received positive results from its latest preliminary economic assessment (PEA) for its 100%-owned Cangrejos project, in Ecuador.

The PEA, completed by MTB Enterprises, demonstrates substantial improvements on the 2018 PEA, with the addition of Gran Bestia, increased mineral resource definition and improved process flow sheet.

Lumina president and CEO Marshall Koval says the company managed to increase the after-tax net present value of Cangrejos by more than $600-million, to $1.6-billion, maintained average yearly gold production of more than 360 000 oz for 25 years and increased the after-tax internal rate of return of the Cangrejos project to 16.2%. He states that the project is an “exceptional global gold deposit” and one of the few of this scale that is 100% controlled by an independent developer.

“Ecuador has made substantial progress in its mining sector with the successful commissioning of Fruta del Norte and Mirador. Now the country will turn their focus to the next generation of development projects,” says Koval.

PEA HIGHLIGHTS

The PEA, initiated in late 2019 was produced by a team of independent consultants that possess extensive expertise in their respective fields. Base case economics were calculated using a gold price of $1 400/oz, copper price of $2.75/lb, molybdenum price of $9.00/lb and a silver price of $16/oz.

The PEA demonstrates a life-of-mine (LoM) average yearly payable production of 366 000 oz of gold, LoM average yearly payable by-product production of 46-million pounds of copper and a 25-year mine life.

It also shows that the plant will run at 40 000 t/d from years 1 to 5, with an expansion to 80 000 t/d in year six.

The project will have average cash operating costs of $545/oz and all-in sustaining costs of $604/oz, net of by-product credits.

The LoM processed grades will be 0.56 g/t gold and 0.10% copper. The project will also have a LoM revenue mix of 78.9% gold, 19.4% copper and 1.7% molybdenum, plus silver.

Initial capital costs, including working capital and refundable value added tax, are $1-billion, while expansion capital to double throughput, including working capital, will be $454-million.