NOVA SCOTIA - ACADIAN GOLD CORP. of Halifax has completed the feasibility study of its Gays River zinc-lead project, owned through the company's subsidiary, SCOZINC LTD. Development has begun with a possible production date as early as the first quarter of 2007.
The Gays River property includes a former producer, a 2,000-tonne/day mill and permitted tailings management system. To restart the mine, Acadian will have to refurbish the mill, strip the deposit in preparation for open pit mining, update certain permits, and hire operating personnel. The price tag for this work is approximately $13.50 million. Annual production would be 39.8 million lb of zinc and 16.5 million lb of lead at cash costs of US$0.34 or $0.36/lb of zinc equivalent.
ScoZinc plans to mine a pit for six years and then move to underground production.
The Gays River deposit contains proven and probable reserves of 4.59 million tonnes grading 3.60% Zn and 1.7% Pb. The property also contains measured and indicated resources of 5.24 million tonnes (4.1% Zn and 2.0% Pb) and an inferred resource of 1.80 million tonnes (3.1% Zn and 1.1% Pb).
The complete project description is available in the press release of July 17, posted at www.AcadianGold.ca.