NOVA SCOTIA – Vancouver-based Resource Capital Gold Corp. has completed the preliminary economic assessment of its Dufferin gold project in the province. The PEA was prepared by MineTech International of Halifax and Global Mineral Resource Services of Vancouver.
Dufferin is a fully permitted, high grade underground mine that has been on care and maintenance since 2014. With modest pre-production capital expenses of C$9.85 million, the company could restart production after a six month period, followed by the ramp up of mining to 300 t/d over a further six month period.
Over a period of 10 years, the Dufferin mine could production 216,050 oz of gold. The project has an after tax net present value of C$89.2 million and an internal rate of return of 121%. There would also be a cumulative after tax cash flow of C$126.3 million. Average cash cost per ounce is estimated to be C$617.
RCG plans to begin trial production in mid-January with the processing of stockpiled material at the mine. Details about the project are posted at www.RCGCorp.ca.