QUEBEC – The positive prefeasibility study for the Duparquet gold project 50 km from Rouyn-Noranda is in the hands of owner Clifton Star Resources of Quebec City. The report was prepared by InnovExplo with contributions from Tenova Mining and Minerals.
The PFS base case examined a 10,000-t/d open pit mine that could average 158,000 oz/year over 11 years of production. Proven and probable reserves total 39.4 million tonnes averaging 1.50 g/t Au and containing 1.7 million oz of gold. The preproduction costs are pegged at C$394 million, the sustaining costs at C$118 million, plus C$24.5 million for closure costs, said Clifton Star. The average operating cash cost is estimated at US$775/oz of gold over the life of the project.
The company is considering two possible processing options. Using the pressure oxidation process has the potential to generate the highest financial returns, but producing gold in concentrate would carry lower capital and operating costs. Clifton Star said it favours pressure oxidation.
Using a long term gold price of US$1,300/oz, the Dufferin project would have a pre-tax net present value (5% discount) of $222 million and a pre-tax internal rate of return of 15.1%. After tax, the discounted NPV is $135 million and the IRR is 12.1%.
More information about the Dufferin PFS results are posted at CFO-Star.com in the news release dated April 9, 2014, and the entire study is to be available there soon.