Medoro Resources Ltd. has filed a preliminary economic assessment study for its Marmato mine in Colombia that pegs the net present value of the project at $1.1 billion, and capital costs of half a billion dollars.
"This study is an important milestone on the company's path to making a mine at Marmato," Serafino Iacono, interim CEO of the Toronto-based miner, said in a statement Friday.
"These findings provide a much clearer view on the proposed mining method, production, costs, and stripping ratios, and have substantiated what we have long believed that there is immense value in the Marmato deposit."
The company is assuming a life of mine capital cost of $550 million.
Based on gold prices of US$1,200 per ounce and silver prices of $16 per ounce, the net present value of the mine is pegged at $1.1 billion, assuming a discount rate of five per cent.
The study, by SRK Consulting (UK) Ltd., found an open-pit mining method would work best, based on processing 283 million tonnes of ore at a rate of 40,000 tonnes per day.
With that method, the company (TSX:MRS) expects to produce an average of 340,000 ounces of gold and 1.3 million ounces of silver per year over a 21-year mine life.
Medoro shares rose nearly 3.3 per cent, or a nickel, to $1.58 on the Toronto Stock Exchange in Friday morning trading.
Medoro's primary focus is its Marmato project, but it also has an interest in the former Frontino properties in Colombia. As well, it has holdings in Venezuela and Mali.
The firm recently announced an agreement to merge with Gran Colombia Gold Corp. to create a leading Colombia focused gold production and exploration company.
The deal is subject to investor and regulatory approval.
"This study is an important milestone on the company's path to making a mine at Marmato," Serafino Iacono, interim CEO of the Toronto-based miner, said in a statement Friday.
"These findings provide a much clearer view on the proposed mining method, production, costs, and stripping ratios, and have substantiated what we have long believed that there is immense value in the Marmato deposit."
The company is assuming a life of mine capital cost of $550 million.
Based on gold prices of US$1,200 per ounce and silver prices of $16 per ounce, the net present value of the mine is pegged at $1.1 billion, assuming a discount rate of five per cent.
The study, by SRK Consulting (UK) Ltd., found an open-pit mining method would work best, based on processing 283 million tonnes of ore at a rate of 40,000 tonnes per day.
With that method, the company (TSX:MRS) expects to produce an average of 340,000 ounces of gold and 1.3 million ounces of silver per year over a 21-year mine life.
Medoro shares rose nearly 3.3 per cent, or a nickel, to $1.58 on the Toronto Stock Exchange in Friday morning trading.
Medoro's primary focus is its Marmato project, but it also has an interest in the former Frontino properties in Colombia. As well, it has holdings in Venezuela and Mali.
The firm recently announced an agreement to merge with Gran Colombia Gold Corp. to create a leading Colombia focused gold production and exploration company.
The deal is subject to investor and regulatory approval.
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