To go it alone or form a partnership. That is the question, for Orvana Minerals (ORV-T) at its Don Mario gold-copper deposit in eastern Bolivia.
Negotiations aimed at evaluating and developing the deposit are continuing on several fronts. The company is considering either accepting a joint-venture proposal from a mining company or entering into an agreement with a banking group to provide financing for a feasibility study and mine development.
A decision was expected by the end of September, but the company says the pace of negotiations has been disrupted by “unfavorable events” in the equities and gold markets.
Based on independent studies, Orvana believes the Lower Mineralized Zone deposit at Don Mario could produce gold at about US$100 to $120 per oz. The project hosts a minable resource of 1.5 million tonnes grading 13 grams gold per tonne.
Capital costs for a 750-tonne-per-day operation are estimated at US$35-40 million. Orvana says commercial production could be achieved within the next two to three years at a production rate averaging more than 100,000 oz. gold annually for 5.4 years using conventional mining and milling methods.
In addition to the Lower Mineralized Zone, the Don Mario property contains a resource estimated at 5.5 million tonnes grading 1.5 grams gold and 1.5% copper in the Upper Mineralized zone. Orvana notes, however, that the metallurgy of this zone has yet to be tested.
Discussions related to Don Mario’s future are expected to be concluded shortly.
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