MEXICO – Alio Gold Inc. (formerly Timmins Gold) of Vancouver has released the pre-feasibility study for its Ana Paula gold project in Guerrero state. The project is 100% owned by Alio.
Examining drill core at the Ana Paula gold project. Credit: Alio Gold.
Ana Paula will be an open pit project based on proven and probable mineral reserves of 13.4 million tonnes grading 2.36 g/t gold and containing 1.02 million oz. of gold. The pit could have a life of 7.5 years, but there is potential for an underground operation, too. The measured and indicated resources below the proposed pit are 3.00 million tonnes at 2.8 g/t or 266,700 contained ounces.
Alio says the project has a net present value (5% discount) of US$223 million and an internal rate of return of 34% after tax at a gold price of US$1,250/oz. At a recovery rate of 85%, the pit will provide 868,000 oz. of gold. All-in sustaining costs are estimated at US$524/oz.
Upfront capital requirements are expected to be only US$137.2 million. Mining will be done by a contractor using 55-tonne haul trucks to supply a 5,000-t/d mill. The mill will include gravity concentrators and an intensive leach reactor. Gravity tailings with be floated to make a gold-bearing concentrate that will then be reground and pass through a carbon-in-leach circuit. The tailings storage facility will be contained behind a conventional zoned earth dam with a starter dam plus three expansions during the mine life.
Complete information about Ana Paula is available at www.AlioGold.com. Visitors can click through to the old Timmins Gold site until the Alio website is completed.