Based on actual geological and test work data, a scoping/pre-feasibility study was done for the scenario of construction of the open pit mine & processing plant with annual throughput of 1.5 M tones.
In parallel, exploration discovered high-grade (~10+ g/t) localized near-to-surface ore amounting ~ 380 KOz of Au. It is strongly expected that this amount will be higher by the end of the year. It gives the chance to start form pilot-scale fast-raising pit & processing plant for about 250 mt of ore pa (~ 70 K Oz Au). The scoping study for small-scale sale pit was prepared. Such a beginning might mean quicker production start and sooner CF, much less CAPEX, easier borrowing and opportunity to finance exploration and mine expansion partially from operational cash flow. Preliminary schedule for the pit & plant construction is following: Q1 2012 – completing DFS (definite feasibility study), 2012-13 – pit and processing plant construction, 2014 – start of production and reaching full capacity.
The pilot-scale production will have output ~70 KOz gold pa, revenue ~ 120 MUSD and FCF ~ 80-90 MUSD.