Canadian Mining Journal

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GOLD-SILVER: Canamex updates PEA for Bruner



The desert of Nye County, Nev., where the Bruner heap leach gold project is being developed. (Image: Canamex Gold)

NEVADA – Canamex Gold Corp. of Vancouver has updated the preliminary economic assessment for its Bruner gold project in Nye County, Nev. The update adds 93,000 oz. of gold and 826,000 oz. of silver to the indicated resource.

The base case PEA, using $1,280/oz. gold (all U.S. dollars) and a 5% discount rate, has an after tax net present value of $69.6 million. The after tax internal rate of return is 31% with a payback period of 1.65 years. The pre-production capex outlay will be $37.8 million for a contractor operated open pit. Average annual cash costs are estimated at $577/oz. of gold during the first two years and $872/oz. thereafter.

If a gold price of $1,500/oz. is applied as an upside case, the IRR rises to 51.5% and the NPV to $114 million. The payback period would be shortened to 1.25 year.

Canamex is planning a 10-year mining operation plus an additional two years during which tails will be treated. Heap leaching has been chosen for oxide ore, and 90% gold recovery is possible with single stage crushing. The recovery rate for run of mine ore is 75%.

The Bruner deposit has resources of 14.1 million indicated tonnes grading 0.58 g/t gold and 5.57 g/t silver containing 260,000 oz. of gold and 2.5 million oz. of silver. The inferred portion contains 63,000 oz. of gold and 273,000 oz. of silver in 3.0 million tonnes grading 0.66 g/t gold and 2.86 g/t silver. Canamex says the deposit is open in several directions.

More information is included in the corporate presentation at www.CanamexGold.com.