Following a preliminary economic assessment, junior explorers Anaconda Gold (ANX-V, ANXGF-O) and Doublestar Resources (DSR-V, DOUBF-O) are budgeting a program of dewatering and bulk sampling at the Damoti Lake gold deposit, 200 km north of Yellowknife, N.W.T.
Consulting firm Mackie and Associates put the capital cost of production at 100 tonnes per day at $5.8 million with production costs of US$131 per oz. Producing 32,000 oz. from the deposit would generate $9.7 million in operating cash flow, using US$400 per oz. as the price of gold. The project’s net present value, based on a 5% discount rate, was $2.7 million.
At US$500 gold, operating cash flow increases to $16.2 million and net present value to $8.5 million.
The preliminary assessment was based on a measured and indicated resource of 40,600 tonnes grading 26.2 grams gold per tonne and an inferred resource of 17,800 tonnes grading 16.4 grams per tonne. The cutoff grade was 8 grams per tonne.
Anaconda Gold, which is earning a 55% interest in the project from Doublestar, plans to dewater the existing exploration decline at Damoti and build a settling pond for the pumped water. The project has its land use and water permits in hand.
Once the ramp is pumped out the partners plan bulk sampling of the deposit.
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