COLORADO – In May this year London, ON-based Fortune Minerals made its first foray into the United States with the purchase of the operating Revenue silver-gold-lead-zinc mine 490 km southwest of Denver. Now the company has completed a preliminary economic assessment giving the property a pre-tax net present value (6% discounted) of US$69.6 million and a pre-tax internal rate of return of 76.4%.
Over the eight-year life of the Revenue mine, Fortune expects to produce 1.86 million oz of silver annually at a cash cost of US$6.62 per oz net of by-product credits. The C1 Cash cost including freight, treatment and refining charges (TC/RC) is expected to be US$10.18 per oz.
The Revenue mine is a fully permitted, underground silver producer that is ramping up to supply a 400-t/d mill. The mining plan is based on a diluted resource of approximately 805,675 tonnes with an average grade of 500.5 g/t Ag, 0.69 g/t Au, 2.26% Pb and 0.90% Zn. Fortune believes the project has significant potential for expansion thanks to the discovery of several more vein systems on the property and the presence of other historic silver mines nearby.
The Fortune website is at FortuneMinerals.com.
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