Minera IRL granted development permit for Don Nicolas Gold Project

Minera IRL, a Latin America gold mining company, has welcomed the announcement of the Environmental Impact Assessment (EIA) and the granting of the development permit for the Don Nicolas Gold Project in Santa Cruz, Argentina.

Minera IRL, a Latin America gold mining company, has welcomed the announcement of the Environmental Impact Assessment (EIA) and the granting of the development permit for the Don Nicolas Gold Project in Santa Cruz, Argentina.

The decision marks a significant step toward the company's aim of bringing the mine on-steam.

Courtney Chamberlain, Executive Chairman of Minera IRL, said: "Don Nicolas is a very attractive, conventional open pit, carbon-in-leach gold project with a high IRR with much additional upside potential. We continue to advance financing options to allow project development during 2013."

The EIA was based on a feasibility study which demonstrated a robust project based on the open pit mining of high grade epithermal gold deposits in the La Paloma and Martinetas vein fields.

Average annual steady-state gold and silver production will be 52,400 ounces and 56,000 ounces respectively.

The capital cost is projected at $56m and the cash operating cost is estimated at $528 per ounce, after silver credits. The post tax internal rate of return using a base case gold price of $1,250 per ounce is 22.8% rising to 38.1% if a gold price of $1,500 per ounce is assumed. The payback period is projected to be two years or less.

The firm has considered a range of funding options for the project, and said the objective is to have financing in place to allow development to commence in 2013 with commissioning expected in late 2013 or early 2014.

NR

Recommended

Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares as of 5 August, providing an insight into how investors are thinking and where opportunities may lie.
9 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022