Lyon Lake finances Cerro Crucitas

Junior Lyon Lake Mines (LLL-V) has raised $1.3 million through a private placement of 4.2 million units priced at 32 cents each.

A unit consists of one share and a half non-transferable share purchase warrant. One whole warrant entitles the holder to buy one additional share at 42 cents (or 43 cents for non-arm’s-length subscribers) for a period of 18 months.

A portion of the proceeds is earmarked for the Cerro Crucitas gold project in Costa Rica. A scoping study of that project indicates potential for an 8,000-to-10,000-tonne-per-day open-pit and conventional milling operation. Over an 8-year mine life, Cerro Crucitas would produce an average of 175,000 oz. per year at a cash cost of US$181 per oz. The minable resource is estimated at 27.9 million tonnes grading 1.68 grams gold and 2.25 grams silver per tonne. The stripping ratio is pegged at 0.9-to-1, while capital costs are estimated at US$135 million, including US$24 million for contingencies and sustaining costs.

The study was based on a gold price of US$350 per oz.