The viability of the Jerooy gold project in the former Soviet republic of Kyrghyzstan is in question.
MK Gold (NASDAQ) has decided the economics of the project will have to improve before it can proceed with development.
The company holds a 30% interest in Jerooy, with the remainder held by a Kyrghyzstan state-owned company.
The proven and probable underground resource stands at 4.3 million tons grading 0.3 oz. gold per ton plus a surface resource of 2.5 million tons grading 0.11 oz. gold.
The capital cost of an underground mining and carbon-in-pulp milling operation is estimated at US$130 million, and MK Gold is asking its partner to take a more active role in reducing the estimated capital cost of the projects.
Gold output is projected at 150,000 oz. per year over a 9-year mine life, at an average cash cost of US$140 per oz.
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