Miraflores feasibility study delivers positive findings for Metminco

A feasibility study into exploration and mining group Metminco's Miraflores gold project in Colombia revealed that the project had the potential to deliver production levels of nearly 45,000 ounces of gold per year.

Metminco said Miraflores, which was also reported to be capable of producing 22,600 ounces of silver per year, would cost roughly $71.8m to develop and would require a further $18.5m in sustaining capital over the mine's nearly decade-long lifespan.

Based on the maiden ore reserve found in the company's last feasibility study, the asset held 4.32m tonnes of gold at a grading of 3.29 grams per tonne, making a total weight of 456,000 ounces of gold with an after-tax net present value of $72.3m.

"We are delighted with the positive FS outcome, which is further vindication of the company's decision to pursue an underground-only development option at Miraflores as a means of reducing capital costs and shrinking the mine footprint," said Metminco's managing director William Howe.

"The study delivers robust returns and with this now in hand, we can focus on arranging the required finance and securing the outstanding approvals in order to be in a position to make a decision on development in a timely manner," he added.

As of 0940 BST, shares had dropped 7.43% to 4.05p.