Goldfields project goes to bank

A final feasibility study on the Goldfields gold project near Uranium City, Sask., indicates an open pit mine and mill would be economic.

The study, prepared for owners GLR Resources (GRS-T), considered a mine milling 1.8 million tonnes to produce 90,000 oz. gold annually. It would have a six-year mine life out of reserves of 11 million tonnes grading 1.69 grams gold per tonne, all in the Box deposit. The pit at Box has a stripping ratio around 3.2.

A second deposit, Athona, was not considered by the feasibility study, but is expected to deliver another three years of reserves.

A mine would have a capital cost of US$46.3 million, and the study pegged cash operating costs at US$280 per oz. and total cash costs at US$374 per oz.

At a discount rate of 8% and a gold price of US$525 per oz., the project has a net present value of US$33.1 million and an internal rate of return of 30.5%.