MANITOBA – BacTech Environmental Corp. of Toronto says the preliminary economic assessment for its proposed reclamation of the arsenopyrite residue stockpile (ARS) in Snow Lake is positive. The study was prepared by Micon International.
The PEA is based on external toll treatment of material, an 88.6% Au recovery and before taxes. Three separate gold prices were studied. The base case assumes a gold price of US$1,396/oz the three-year average cumulative cash flow would be C$13.3 million for an internal rate of return of 11.1%, a payback period of 4.9 years and cash costs of US$9972.72/oz. At the high end of the estimates, if gold is US$1,674/oz, the cumulative cash flow would be $34.2 million and payback would occur in only 3.1 years. The IRR would be 26.3%, and the total cash cost would be US$989.62/oz of gold. The capex is estimated to be $21.4 million.
BacTech has an agreement with the Manitoba government to employ its proprietary bioleaching technology to eliminate further leaching of arsenic from the ARS into the surrounding watershed. Bioleaching will create two streams: one will be a stable ferric arsenate precipitate and the second will be a gold-containing residue. BacTech’s proposed plant will treat 109 t/d of material for seven years. Approximately 10,400 oz of gold would be recovered annually;.
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