QUEBEC – Radisson Mining Resources of Rouyn-Noranda, QC, has released the preliminary economic assessment for its O’Brien gold project 50 km east of Rouyn-Noranda. The report recommends further work including delineation drilling and an updated resource estimate.
The PEA proposes an underground mine to a vertical depth of 550 metres. Indicated and inferred resources are 712,521 tonnes at 6.46 g/t Au. It would produce a total of 135,308 oz of gold over a six-year period. Average operating cost is estimated to be US$752 per oz. The pre-production cost would be C$36.8 million including a contingency of 18%.
As proposed, the O’Brien project would have a pre-tax net present value (5% discount) of C$200,000 and generate a net cash flow of C$7.2 million. The pre-tax internal rate of return would be 5%.
More information is posted at RadissonMining.com.