ONTARIO – Toronto-based Argonaut Gold says the feasibility study for its 100% owned Magino gold project with total production of nearly 2 million oz. of gold looks promising. The project is located 40 km northeast of Wawa.
The study examines an open pit mine and 10,000-t/d mill, a scenario that reduces initial capital requirements. Assuming a $1,250 (all US dollars) gold price and a 0.78:1 US dollar to Canadian dollar, the redeveloped Magino mine and mill would have a net present value (5% discount) of $288 million, and an internal rate of return of 19.5%, with a 3.9-year payback period. (All figures based on after tax assumptions.) A 30,000-t/d operation executed as a joint venture was also studied.
Pre-production capex requirements will be $321 million, including a contingency of $28 million. Sustaining and closure costs are pegged at $84 million. All-in sustaining cost per ounce will be $711. Gold production will average 123,000 oz. per year over the 14-year life of the mine.
Argonaut says the Magino deposit contains 144.0 million tonnes of measured and indicated resources grading 0.91 g/t plus 33.2 million tonnes of inferred resource grading 0.83 g/t gold.
More details from the feasibility study are available at www.ArgonautGold.com.