A feasibility study on the Jacobina gold mine in Brazil indicates it would be economic for operator
The study by SNC Lavalin indicated that a 100,000-oz.-per-year operation could be put into production for US$33.8 million, just over half of which would go into underground development. About US$6 million would go into improvements to the existing Jacobina mill, which would have a capacity of 4,200 tonnes per day.
Over a 7-year mine life, the total capital costs would run to US$39.3 million, including closure.
The study estimated the cash cost of production at US$12.89 per tonne, or US$189 per oz. At a US$350-per-oz. gold price, the project would have a net present value (discounted at 5%) of US$127 million, for internal rate of return of 49%.
A new mining operation at Jacobina would exploit the past-producing Joao Belo mine and develop the unmined Basal Reef deposit and the newly defined resource at Serra do Corrego. Together, the three deposits have a minable reserve of 10.7 million tonnes grading 2.2 grams gold per tonne.
Joao Belo, which would be the cornerstone of the operation, has a proven reserve of 1.7 million tonnes grading 2.2 grams per tonne, and a further 5.8 million tones of probable ore running 2.1 grams per tonne. The Basal Reef deposit has 2.3 million tonnes of 2.5 grams and Serra do Corrego another 972,000 tonnes at 2.1 grams.
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