Metminco posts scoping stufy results for Miraflores

Metminco announced results for scoping level work completed by SRK Consulting on Thursday, on an underground-only mining study at the Miraflores Project in Colombia, which the company has a 100% interest in.

The ASX and AIM-traded firm said based on the updated capital and operating costs for the option, and the associated financial returns, the project is considered to be financially robust and represents a viable development option.

It said the Miraflores Project has a measured and indicated mineral resource of 9.19 million tonnes at 2.81g/t gold and 2.76g/t silver, at a cut-off grade of 1.2g/t Au, which has formed the basis of the mining study.

SRK refined the prior underground mine design and associated mining schedule, in addition to updating operating and capital costs to Q3 2016 US dollars.

The mining schedule produces 4.03 million tonnes at a mined grade of 3.51g/t Au and 2.84g/t Ag over a mine life of 9 years, producing approximately 50,000oz of recovered gold per annum at steady state.

“The technical assessment and financial modelling of the underground mining option at Miraflores has clearly demonstrated that this option is technically and financially robust and has significant advantages over previous studies conducted at the project,” said managing director William Howe.

“The potential to reduce capital costs significantly, as indicated by this study, together with the social and environmental advantages relating to the smaller footprint for the project, make this development option an achievable target for the company."