CALIFORNIA – Golden Queen Mining Co
. of Vancouver says the first gold bar has been poured at the Soledad Mountain gold-silver project south of Mojave. Leaching began in early February, and now the Merrill-Crowe plant is operational. The project is owned 50% by Golden Queen and 50% by Gauss LLC.
The feasibility study done in February 2015 put average annual gold production at 74,000 oz and silver production at 781,000 oz over an 11-year mine life. The after tax net present value is US$213 million (5% discount) and the after tax internal rate of return will be 28.3%.
The proven and probable reserves total 85.54 million tonnes grading 0.575 g/t Au and 9.53 g/t Au. The inferred resource is 21.39 million tonnes at 0.343 g/t Au and 7.20 g/t Ag. About 65% of the M&I resource qualifies as proven and probable reserves: 46.31 million tonnes grading 0.661 g/t Au and 11.092 g/t Ag. The reserves are estimated to contain 983,600 oz of gold and 16.52 million oz of silver.
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