The board of directors of
Under a revised feasibility study, Marlin is expected to mine 4,000 tonnes of ore per day, which would result in 217,000 oz. gold and 3.3 million oz. silver over 10 years. Total production costs are pegged at US$210 per oz. gold; total cash costs, at US$93 per oz. The estimated gold recovery is 91%, and for silver, the figure is 83%.
Beginning in early 2006, open-pit mining is expected to commence over a proven and probable reserve of 11.8 million tonnes grading 3.18 grams gold per tonne. In addition, an underground operation will target a probable reserve of 2.3 million tonnes grading 12.82 grams gold, plus an inferred resource of 909,000 tonnes grading 10.64 grams gold.
The deposit remains open to the west and at depth.
Based on a gold price of US$325 per oz., and a silver price of US$5 per oz., the project would generate an internal rate of return of around 25%.
With an approved environmental impact assessment in hand, Glamis expects to receive an exploitation licence for Marlin as early as mid-December.
In all, the company expects to spend US$235 million over the next two years. The capital will be used to advance the El Sauzal gold project (in Mexico) to commercial production, as well as carry out construction work at Marlin and doubling annual gold output at the Marigold project (in Nevada) to 180,000 oz.
Glamis expects to produce 260,000 oz. gold at a total cash cost of US$170-US$180 per oz. in 2004. By 2006, production is expected to soar to 600,000 oz. at less than US$150 apiece.
The company intends to fund its growth plans with the US$147.2 million in cash and equivalents on hand and with future cash flow.
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