MANITOBA — Garson Gold of Toronto says the preliminary economic assessment for the reopening of the Britannia gold mine at Snow Lake is positive. The study assessed the economics of mining at No.3 zone and reactivation of the 2,150 t/d New Britannia mill which is currently on care and maintenance.
The No.3 zone is located 1.5 km from the New Britannia mine and mill and remains open for expansion down plunge. There is an indicated resource of 394,000 tonnes grading 6.72 g/t Au and an inferred resource of 575,000 tonnes grading 6.31 g/t Au. Longhole mining would produce 680 t/d of ore. The mill would operate four days a week to treat it. Recovery is estimated to be 92% or 137,400 oz of gold.
Capital requirements are estimated to be $22.33 million pre-production (equipment purchases and rehabilitation of the ramp and infrastructure) and $13.95 million sustaining. Average cash operating cost would be US$362.28 per ounce. The after tax internal rate of return (IRR) of 18.9% has been calculated based on US$725/oz of gold and an exchange rate of C$1.20 per US$1.00.
The study considered only the No.3 zone, and the potential exists for its expansion. Garson Gold is also testing advanced and early-stage exploration targets on the property.
Additional information is available at www.GarsonGold.ca.