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Golconda Gold Ltd V.GG

Alternate Symbol(s):  GGGOF

Golconda Gold Ltd. is a Canada-based un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. The Company operates through its wholly owned subsidiary, Galane Gold Mines Ltd., two assets: a producing gold mine which also has the rights to certain mineral exploration tenements (the mine and mineral exploration tenements collectively, the Galaxy Property) located in the Republic of South Africa (South Africa) through subsidiaries located in South Africa, and a gold and silver mine and processing infrastructure located in the United States of America (the Summit Property) that is in care and maintenance. The Galaxy gold is situated approximately eight kilometers (km) west of the town of Barberton and 45 km west of the provincial capital of Nelspruit in the Mpumalanga Province of South Africa. The property covers approximately 58.6 square kilometers (km2) is part of the prolific Barberton Greenstone Belt.


TSXV:GG - Post by User

Bullboard Posts
Post by Rich12on Apr 28, 2009 8:52am
397 Views
Post# 15949083

Feasibility Report Released

Feasibility Report ReleasedPreliminary feasibility report has been released and it doesn't look too bad. Some of the highlights are:

1.    Pre-production capital expenditures of C$22.33M
2.    Initial production of 40,000 oz per year
3.    Average production cost is approx $363/oz.



Quotes:

Mining and Processing:


- Mining plan for approximately 830,000 tons (753,000 tonnes) at an average grade 0.179 opt (6.14 grams per tonne) inclusive of mining dilution and losses (approximately 149,000 ounces)

- A mining rate of 1,000 tons per day (750 tons mill feed and 250 tons waste) for a mine life of approximately 3 years and a total project life of approximately 3.8 years.

- Milling rate of 1,300 tons per day on a 4 day per week basis at an estimated recovery of 92% (approximately 137,400 ounces)

Economic Analysis:

- An after tax internal rate of return (IRR) of 18.9% based on US$ 725 per ounce gold and an exchange rate of C$1.20 per US$1.00

- Cumulative undiscounted cash flow of C$16.64 M and an NPV of C$7.73M at an 8% discount rate and an NPV of C$10.66M at a 5% discount rate.

- Pre-production capital expenditures of C$22.33M and sustaining capital expenditures of C$13.95M (undiscounted and includes a C$4.15M contingency)

- Average cash operating cost of US$362.38 per ounce or C$72.00 per ton milled
Bullboard Posts