Las Cruces study completed

A new feasibility study has been completed for Las Cruces, a base metal project held by a unit of MK Gold (MKAU-O), near Seville, Spain.

DMT-Montan Consulting, Lurgi Metallurgie, and the Outokumpu Technology Group all contributed to the study, which incorporated requirements that arose from the environmental and permitting process.

In particular, modifications have been made to the process plant design. It will be simplified by using only atmospheric leaching, thus eliminating the expensive autoclaves for pressure leaching, but without sacrificing copper recovery.

The feasibility study includes a new open-pit mine plan and reserve calculation prepared by DMT. Minable reserves were increased to 16.1 million tonnes with an average grade of 6.53% copper. The previous study (2001) estimated a minable reserve of 15.8 million tonnes averaging 5.94% copper.

Based on the results of the new study, MK Gold views the project as having the potential to be a low-cost producer. Cash costs are estimated to average 0.33 euro per lb. of copper produced. Capital costs are estimated at 281 million euros, including working capital.

MK Gold notes that the cost estimates could be affected by various factors, notably the exchange rate of the euro relative to the U.S. dollar. “Further weakening of the dollar could have an adverse effect on the development and operation of the project,” the company says.

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