Development of the Refugio gold property in Chile is proceeding as planned.
Bema Gold (TSE), 50% owner of the property, recently released a positive feasibility study calling for a 33,000-ton-per-day operation capable of producing in the order of 233,000 oz. gold per year at an average cost of US$189 per oz.
An audit of the study was initiated by an international banking group interested in acting as the lead bank and syndicate manager for the project financing.
Total capital cost for the project including working capital is US$115 million.
Consultants Pincock, Allen & Holt completed the audit of the preliminary feasibility study and determined its estimates are realistic.
Bema has also awarded a guaranteed fixed price contract to Davy McKee to construct mine facilities including engineering and procurement.
Both the audit and the construction contract are viewed as important hurdles in the financing process.
Detailed design and engineering work will begin in July with construction planned for January, 1992, assuming Bema can arrange financing.
Be the first to comment on "Verde gold project on track in Chile"