QUEBEC – Vancouver's Gold Bullion Development Corp. has filed the pre-feasibility study for a rolling start of its Granada gold project 5 km south of Rouyn-Noranda with SEDAR. The mine is a former producer (1930-35).
The rolling start refers to phase 1 of the open pit plan using a higher cut-off grade and more conservative economic outlook than the earlier preliminary economic assessment. The company says this lowers risk and will help attract financing.
The pit is to produce 550 tonnes of ore daily, based on 569,000 tonnes grading 4.24 g/t Au. Average annual gold production will be 24,528 oz during the three years rolling start.
Gold Bullion believes pre-production capital requirements will be $6.7 million, and sustaining capital requirements will be $2.89 million. The average total cash cost per ounce will be US$ 797. The project has a pre-tax internal rate of return of 169% and an after tax IRR of 139%. The net present value before tax with a 6% discount is $24.65 million, and after tax the NPV is 20.04%.
The in situ resource estimate updated in November 2012, included 28.74 million measured tonnes at 1.02 g/t Au, 18.74 million indicated tonnes at 1.09 g/t, and 29.98 million inferred tonnes at 1.07 g/t. Slightly more than 1.03 million oz are thought to be contained in all categories. A cut-off grade of 0.40 g/t Au was used.
Read the history of the Granada mine by clicking here.
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