MANITOBA – Toronto-based Auriga Gold has a positive preliminary economic assessment that proposes an open pit and mill refurbishment for the company’s Maverick gold property 65 km northeast of Flin Flon. The Maverick project includes the former Puffy Lake mine and adjacent Nokomis property.
The PEA examined an open pit test mine and milling of 530,000 tonnes of mineralized material. The existing mill and infrastructure would have to be refurbished while the open pit is developed over a period of 10 months. The estimated cost is $15.6 million. Five small pits would be mined sequentially to provide 1,000 t/d to the mill. Approximately 70,000 oz of gold would be recovered over a period of 1.5 years.
Auriga’s base case for Maverick uses a gold price of US$1,400/oz. The projected pre-tax net present value (8%) is $20.8 million, and the pre-tax internal rate of return would be 197%.
Additional details are available at www.AurigaGold.ca.