Toronto-based Exall Resources (TSE) has signed an agreement to acquire the exclusive right to explore for and develop alluvial gold and diamond deposits along a section of the Mazaruni River in Guyana.
The company says it will launch a 2-phase exploration program designed to determine the grade of the mineralized gravels and the feasibility of a large-scale commercial dredging operation on the property.
Exall’s concession, which covers a 14.5-km length of the 300-metre-wide river, is estimated to contain 20-40 million cubic metres of mineralized gravels. Several small dredges are currently operating up and down river and, over the years, diamond production has totalled about 4.5 million carats. The company says the first phase of the program will involve sampling and evaluation to be followed by installation of a US$500,000 pilot plant dredge capable of processing 1,000 cubic metres of gravel per day. The dredge is expected to recover 95% of contained gold and diamonds using proven technology.
Gross operating revenues from the pilot operation are estimated to be US$100,000-200,000 per month.
The second stage of the program will investigate the buried gravels of the flood plain on both banks of the river.
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