Lumina Gold Corp (TSX-V:LUM, OTCQX:LMGDF) said it has received favourable results from its preliminary feasibility study (PFS) at its wholly-owned Cangrejos gold-copper project in El Oro province, southwest Ecuador.
The highlights of the PFS include estimates showing 26-year mine life with a revenue mix of 79% gold, 20% copper and 1% silver, the Vancouver-based company said, adding that the average annual payable production is estimated at 371,000 ounces gold and average payable by-product production is estimated at 42 million pounds of copper.
The PFS also estimated 469,000 ounces (oz) of average annual gold equivalent production through the life of the mine, with an estimated 30,000 tonnes per day processing operation from years one to three, rising to 60,000 in year four and 80,000 in year seven.
Other highlights include average cash operating costs of $602/oz and all-in-sustaining costs of $671/oz, net of by-product credits. Additionally, initial capital costs of $925 million include working capital and exclude refundable value-added tax.
“This study not only confirms the tremendous value of the Cangrejos project, but also allows the company to commence negotiating terms for its investment protection agreement and begin the permitting process required for Cangrejos to begin construction. We believe that this is one of the best gold and copper development assets globally based on its surrounding infrastructure, scale and multidecade mine life,” said Marshall Koval, president and CEO.
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