Based on an independent prefeasibility study, the Loma Hierro deposit in western Cuba, is expected to produce 1.5 million oz. silver annually at a cash cost of US$1.85 per oz.
The mine, owned by Holmer Gold Mines (HGM-A) and situated in the Pinar del Rio district, has been advanced to full feasibility. A production decision will follow.
Holmer envisions an open-pit, tank-leach operation that would produce 800 tonnes per day over five years. The proposed mine would generate cash flow of about US$6 million in the first full year of operation, with the capital payback projected at less than one year.
Holmer views these estimates as conservative, as they are based on reserves of 500,000 tonnes averaging 300 grams silver per tonne from the 1994 discovery area only. Last year, reserves were increased to 850,000 tonnes.
Ongoing work includes baseline environmental studies, more infill drilling and metallurgical testing. An exploration program is testing selected gossans and silver anomalies within the 20-km-long Loma Hierro silver belt.
Caledonia Mining (CAL-T) can earn half of Holmer’s 50% interest in various Cuban properties, including Loma Hierro.
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