Metminco Ltd. said Oct. 18 that a feasibility study on the Miraflores gold project in Colombia estimated a posttax net present value, discounted at 8%, of US$72.3 million and an internal rate of return of 25%.
CapEx, excluding a 7.67% contingency, is expected at US$71.8 million, with an additional US$18.5 million for sustaining CapEx over an approximate 9.5 year life.
Average production for the underground operation is pegged at 45,000 ounces of gold and 22,600 ounces of silver at all-in sustaining costs of US$643 per ounce.
Free cash flow for the operation's life is estimated at US$150 million.
The study was based on a gold price of US$1,300 per ounce and a maiden ore reserve estimate in the proven and probable category of 3.0 million tonnes containing 417,000 ounces of gold and 295,000 ounces of silver grading 4.35 g/t gold and 3.08 g/t silver.
In a same-day statement, Metminco said the maiden ore reserve represents a conversion rate of approximately 50% of measured and indicated resources.