With the mine feasibility study at the Brewery Creek project in the Yukon nearing completion, owner Loki Gold (VSE) is preparing an Initial Environmental Evaluation (IEE) submittal for regulators.
Loki reports that metallurgical work on “run-of-mine” material during the winter indicated gold recoveries of greater than 81%.
As a result, the company hopes to eliminate the need for crushing and agglomerating facilities, which, in turn, will lower capital and operating costs.
Lower costs have also prompted the company to lower the cutoff grade for planning purposes.
At a 0.5-gram-per-tonne cutoff, the undiluted and uncut geological resource is estimated at 22.2 million tonnes grading 1.52 grams, including both oxide and sulphide mineralization.
Based on a 0.5 gram cutoff, diluted minable oxide reserves are estimated at 16.7 million tonnes grading 1.48 grams, with a stripping ratio of 1.19-to-1. Feasibility work is based on a 2-2.3 million-tonne-per-year operation producing about 2.5 million grams (80,000 oz.) per year.
Capital and operating cost estimates have not been released. Loki Gold has about 24.5 million shares outstanding (28.4 million fully diluted) and about $1 million in working capital.
Exercise of all outstanding warrants and options would bring in a further $5.7 million.
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