An independent feasibility study commissioned by MK Gold estimates US$128 million will be required to develop a mine and mill at the Jerooy gold project in Kyrghyzstan.
The company and Kyrghyzstanian officials are meeting with financial agencies to arrange financing for 70% of the capital costs, as well as risk insurance for MK’s investment in the Central Asian republic. Operating costs are estimated at US$140 per oz., and royalties and fees payable to the republic will amount to about US$40 per oz.
Envisaged as an underground mine, Jerooy is expected to recover nearly 1.5 million oz., with annual production projected to exceed 150,000 oz. in the first 6-7 years. Production during the peak year is projected at 175,000 oz. The mill is expected to process 1,800 tons per day, with an average millfeed ore grade of 0.23 oz. per ton. MK says the head grade will be even higher (up to 0.35 oz. per ton) in the initial phase of production.
The company also has gold mining interests in the U.S., including a 53% share of the American Girl mine and 25% of the Castle Mountain mine, both of which are in California.
For the first quarter, MK’s interests produced a total of 19,844 oz. gold at a cash cost of US$254 per oz.
The company recently acquired an equity interest in Arlo Resources (VSE), a junior active in Panama and Mongolia.
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