Thursday, 27th March 2008 (1583 views)

GBS Gold has announced the initial mineral reserve estimate and feasibility results for its gold mining project in Australia.

The Cosmo Deeps underground project is located within the company's Union Reefs Operations Centre in the Northern Territory.

GBS estimated that initial project capital will reach $30 million (£14.9 million). This figure comprises water removal, historic tailings, underground development and primary mining activities, in addition to the establishment of the site.

Production is scheduled to start within the first half of 2010, with an average rate of between 75,000oz and 100,000oz each year for approximately four years.

An internal rate of return was set at 42 per cent using average life-of-mine operating costs of between $400/oz and $450/oz.

Feasibility work resulted in an initial probable reserve being set at 2.2 million tonnes (t), at five g/t for 350,000oz of gold.

In related news, yesterday saw GBS appoint a new president and chief executive officer named Peter Breese.

 

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