IDAHO – Vancouver-based Midas Gold Corp. has completed a pre-feasibility study for its Stibnite gold project near McCall. Not only are the results of the study positive, the company says redevelopment of the brownfield site has the potential to vastly improve its environmental impact and could create one of the larger gold mines in the United States.
The PFS outlines a US$970 million project that will create an open pit mine and retreat all the historical tailings material that contains significant amounts of gold. In the first four years, 388,000 oz of gold and 14 million lb of antimony would be recovered annually. Over the 12-year life of the project annual gold production will total 4.04 million oz and antimony output will total 99.9 million lb. All-in sustaining costs net of by-product credits will be 616 per oz of gold over the life of the mine.
The Stibnite gold project has a pre-tax net present value (5% discount) of US$1.093 billion and a pre-tax internal rate of return of 22.0%. The pre-tax payback period will be 3.2 years.
The total indicated resource is 104.5 million tonnes grading 1.63 g/t Au, 2.65 g/t Ag, and 0.07% Sb. Contained within it are 5.46 million oz of gold, 8.90 million oz of silver, and 155.17 million lb of antimony. The inferred resource was not included in the PFS.
The news release dated Dec. 15, 2014, contains significant details of the Stibnite project. It is posed at MidasGoldCorp.com.