feasibility study looks ok?
Sulliden Announces Results of Shahuindo Feasibility Study
TORONTO, Sept. 26, 2012 /CNW/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE.TO - News) (BVL:SUE.TO - News) (OTCQX:SDDDF - News) announces the results of a positive Feasibility Study by Kappes, Cassiday & Associates and Mine Development Associates to develop the epithermal gold and silver deposit located on its 100% owned Shahuindo property in Peru.
Highlights of the Feasibility Study 1, 2:
- Pre-production capital costs of $131.8 million3
- 10,000 tonnes per day operation producing 87,700 oz of gold equivalent per annum4
- Pre Tax Internal Rate of Return of 52.2%
- After Tax Internal Rate of Return of 37.8%
- Total cash operating costs of $552/oz gold 5
- LOM average gold grade of 0.84 g/t and average silver grade of 9.50 g/t
The Feasibility Study demonstrates a straightforward mining project including a shallow open pit mine with a heap leach and a conventional carbon adsorption (Adsorption-Desorption-Recovery (ADR) plant) processing plant for precious metal recovery. The project requires initial capital of $131.8 million that will support a mining rate of 3.65 million tonnes per year, producing gold at an average cash cost of $552 per ounce and average annual production of 87,700 gold equivalent ounces. Highlights of the project performance are summarized in Table 1.
The mining scenario presented in the Feasibility Study considers only approximately 40% of the gold ounces from the total oxide mineral resource (see Mineral Resource press release from September 5, 2012). Although the mineral resources currently outlined on the property could support a significantly higher mining rate and production profile, it is the Company's preference to build a low capital cost and smaller footprint operation. This initial mining scenario will act as a foundation for future production growth and will also provide the Company with the opportunity to fund future expansions from internally generated cash flow.
Peter Tagliamonte, President and CEO, commented "The completion of the Feasibility Study marks an important milestone towards our goal of becoming a gold producer. We are pleased to be able to deliver an initial project study with modestly sized capital costs that we believe should provide faster cash flow generation, expeditious permitting, and a shorter construction schedule. Future growth is anticipated once in production and we plan to fund this expansion from internal cash flows."