Metminco upbeat on improved Miraflores resource estimate

Metminco announced on Tuesday that it received an updated and improved mineral resource estimate for the Miraflores gold deposit in Colombia prepared by Metal Mining Consultants based in Denver, Colorado, in accordance with the guidelines of the JORC Code.

The AIM-traded firm said the updated mineral resource estimate, which was undertaken to provide the basis of the detailed mine plan for the Miraflores Feasibility Study, replaced the previous JORC statement completed by MMC that was released to the market on 21 July 2016.

It said the new JORC 2012 Mineral Resource Estimate represented an increase in gold contained in the measured and indicated resource and inferred resource categories.

The report estimated measured mineral resources of 2.95Mt @ 2.98g/t Au and 2.5g/t Ag, and indicated mineral resources of 6.31Mt @ 2.74g/t Au and 2.9g/t Ag.

Measured and indicated mineral resources totalled 9.27Mt @ 2.82g/t Au and 2.77g/t Ag, and inferred mineral resources were 0.49Mt @ 2.36g/t Au and 3.64g/t Ag.

The estimate represented an increase in measured and indicated resources of approximately 8,000 oz contained gold and inferred resources of approximately 29,000 oz contained gold

Total measured and indicated resources contained 840,000 oz Au and 826,000 oz Ag.

The mineral resource estimate was based on 25,884 metres of drilling in 73 diamond drill holes and 236 metres of underground channel samples and using a 1.2g/t Au cut-off grade.

“The company, together with its engineering consultants, are making excellent progress on the feasibility study for the potential development of the Miraflores Gold Project located at Quinchia, in the Department of Risaralda, Colombia, with the date for completion of the feasibility study anticipated to be end of May 2017,” said managing director William Howe.

“GR Engineering, a Perth, Australia, based consulting engineer has been commissioned by the company to complete the feasibility study encompassing an underground mine, processing facilities, infrastructure and tailings facility.”

Howe said the company continued to work closely with governmental authorities and the community in relation to the potential mine development, with preparation of the EIA for development also progressing well and the company anticipating submission of the EIA to the relevant government authorities by the end of 2017.

“At these updated resource tonnages and grades Miraflores represents a high quality gold project that is on par with other Colombian gold mines coming on stream or already in production.

“Additionally, Miraflores will represent the first of a number of potential projects within the Quinchia portfolio.

“The focus remains to advance Miraflores through the remainder of this year and to further derisk the project.”