NOVA SCOTIA – Montreal-based Orex Exploration has summed up the potential of the Goldboro gold project as a small, low capital cost mechanized underground mine. Initial output would be 21,000 oz of gold per year and rising to 30,000 oz/year with a forecast cash cost of production set at US$500 over the life of the mine.
Pre-production capital expenditures and first year capital will be US$24.3 million, including a 20% contingency. An additional US$3.7 million will be used for working capital, and sustaining capital will total US$13.4 million, or US$2.2 million per year. Expanding the operation from 350 t/d to 500 t/d in the second and third years of operation carries an additional capital cost of US$8.8 million.
Orex plans to begin mining using the existing portal and developed areas with an estimated workforce of 85 people. Testing indicates that gravity separation will recover 70% of the gold and flotation an extra 20% to 23%.
The Goldboro mine has a measured resource of 149,000 tonnes at 5.8 g/t Au (27,900 contained oz), an indicated resource of 1.44 million tonnes at 7.8 g/t (358,700 contained oz), and an inferred resource of 1.54 million tonnes at 6.95 g/t (343,400 contained oz). Orex said it will continue its exploration efforts, particularly at depth and to the eastern boundary of the property.
Information about the history of the Goldboro mine is available at OrexExploration.com.