Work on the retreatment of mine tailings at its Yellowknife location in the Northwest Territories will proceed, says Toronto-listed Giant Yellowknife Mines.
Highlights of a recent directors meeting include:
* Approval to start work on a 200-ton-per-day pilot plant at a cost of $700,000 in order to properly size a full-scale production facility which will be built in the latter part of this year and next.
* Approval to start work on dams for a new tailings pond which will be required to receive the retreated tailings.
* Capital expenditures for the whole project, including tailings dam cons truction will be $24.6 million.
The present tailings ponds contain 7 million tons grading 0.067 oz gold per ton. The planned extraction rate is 1.4 million tons per year for a period of five years with expected recoveries of about 40% to produce about 37,000 oz of gold per year.
At present gold prices, the project has an indicated payback of less than two years and a rate of return in excess of 50%.
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