A feasibility study on Continental Gold’s (TSX: CNL; US-OTC: CGOOF) Buritica gold-silver project in Antioquia, Colombia, confirms strong economics for a high grade underground mine.
BMO analyst Brian Quast comments the study has increased his “level of confidence” in the project’s economics.
The new study envisions Buritica as a 14-year operation recovering a total of 3.5 million oz of gold and 6.4 million oz of silver. Life of mine production will average 253,000 oz of gold and 466,000 oz of silver annually, with higher output expected during the first five years.
A 2014 preliminary economic assessment (PEA) had proposed an 18-year operation at Buritica, churning out 4.8 million oz of gold and 7.1 million oz of silver. It, however, included lower grade inferred resources.
The feasibility study indicates the underground mine will process 2,100 tonnes per day, before ramping up to 3,000 tonnes per day by year three. This varies slightly from the PEA’s initial throughput of 2,000 tonnes per day and ramp up to 3,500 tonnes per day over the same time.
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