Belo Sun Mining’s (TSX: BSX; US-OTC: VNNHF) Volta Grande gold project in Brazil’s Para State has garnered positive attention from analysts after a feasibility study cut the project’s costs, making it more attractive.
“What the Belo Sun team did is we really focused on looking at the conditions in the market place… We really adjusted the capex (capital expenditures) to the output of the mine,” Peter Tagliamonte, the company’s president and CEO, says in an interview.
The feasibility study envisions Volta Grande, comprising the Ouro Verde and Grota Seca deposits, as an open-pit mining operation, producing 205,000 oz. gold a year over a 17-year life, with start-up costs of US$298 million. In comparison, the 2014 preliminary economic assessment (PEA), which followed a 2013 prefeasibility study, pegged annual production at 167,000 oz. over 21 years, with initial costs at US$329 million.
The 9% improvement in initial capex …
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