MEXICO – The directors of Toronto-based Agnico-Eagle Gold Mines have approved the US$158-million La India open pit gold mine and heap leach. Construction will begin immediately, and production is expected in 2014.
The company says the feasibility study estimates that the La India project will generate an internal rate of return of approximately 31% assuming a gold price of US$1,379/oz. Metallurgical recoveries are estimated to average approximately 80%, resulting in average gold production of 90,000 oz per year. The waste to ore stripping ratio in the pit is estimated at approximately 1:1. Life of mine total cash costs at La India are expected to average $500/oz.
The initial probable reserves at La India total approximately 44.6 million tonnes grading 0.65 g/t Au, containing 930,000 ounces. These amounts are based on drilling completed before the end of May, 2012. Infill and step-out exploration drilling is continuing.
The La India project is located in Sonora state, 70 km from Agnico’s Pinos Altos gold mine.
Visit Agnico-Eagle.com/Theme/Agnico2/files/PRImages/2012/LaIndiaPR/La%20India%20&%20Tarachi%20Project2012.jpg to examine the La India location and property map.