Crew Development tables Nalunaq Feasibility

Vancouver — Crew Development (CRU-T) has tabled the feasibility study of its Nalunaq gold deposit in Greenland which suggests initial offshore processing of the ore.

The study, performed by Kvaerner Engineering & Construction UK, compares the economics of offshore and onshore processing and recommends that offshore processing should be pursued initially. This allows for immediate cash flow and further expansion of the resources with minimal capital outlay.

Crew reports that an initial mining rate of 350 tonnes-per-day will produce about 90,000 oz. gold per year at a total cash cost of US$169 per oz. The feasibility study takes into account that the current measured and indicated resources which currently stand at 596,600 tonnes grading 20.6 grams gold per tonne, have significant upside potential that may be developed along side of the mining and offshore processing operation. The resource hosts 378,000 tonnes averaging 15.7 grams gold in the inferred category.

Total capital requirements are estimated at US$9.7 million for offshore processing. This compares with US$25.6 million for an on-site processing plant. The high-grade nature of the Nalunaq ore coupled with the mine’s location to navigable waters, allows for the expansion of the resources via the revenues generated from offshore processing. An added benefit to shipping the ore is the fact that it will also minimize environmental impact and maintain employment benefits to the local community.

The project will be financed through a previously announced US$8 million credit facility with Standard Bank London plus the net revenue from the processing of the ore current stockpile which holds about 20,000 oz. gold.

Comprising 1,080 sq. km, the Nalunaq property hosts a high-grade, narrow-vein, underground deposit. It is 40 km from the village of Nanortalik on the southern tip of Greenland, and 6 km from tidewater. Crew acquired its stake in the project in late 1999 through a merger with Mindex of Norway. The remaining 33% is held by NunaMinerals, which is owned by the state of Greenland.