ONTARIO – A positive feasibility study for the Rainy River gold-silver project 80 km south of Kenora has owner Rainy River Resources of Toronto eager to proceed. The proven and probable reserves host 4.0 million oz of gold and 10.3 million oz of silver contained in 116.3 million tonnes (pit and underground) averaging 1.08 g/t Au and 2.76 g/t Ag.
Using US$1,400/oz gold and US$25/oz silver, the after tax net present value is C$931, the internal rate of return is 23.7% and the payback period only 3.2 years. Rainy River said its "all-in" cost per ounce of gold will be US$771 for the first 10 years of operation. The same timeframe will see annual production of 326,000 oz of gold and 494,000 oz of silver.
The company wants to build a 21,000-t/d mill to treat open pit, underground and stockpiled ore. Two years of pre-production would be followed by 16 years of mining, including treatment of the stockpiles. Underground development will start in the first year of open pit mining, and reach commercial rates five years later.
Additional details from the feasibility study are available in the news release dated April 10, 2013, posted at RainyRiverResources.com.
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