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INV Metals Feasibility Study sor The Loma Larga Gold-Copper-Silver Project

Mining News - Published on Wed, 01 Apr 2020

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INV Metals Inc announced the positive results of the independent updated Feasibility Study prepared for its 100% owned Loma Larga gold-copper-silver project, located in Ecuador. INV Metals CEO Ms Candace MacGibbon said “We are very pleased to release the positive results of the updated Feasibility Study which incorporate the relocation of the plant infrastructure and tailings facility near the proposed mine site; updated capital and operating cost estimates; and current Mineral Resources and Reserves. While the capital and operating costs have not changed materially since the results of the previous Feasibility Study were filed in January 2019, the gold price environment has strengthened and we have reflected the current long-term consensus gold price of US$1,400/oz into the FS. The Project is forecasted to return a robust after-tax 28.3% Internal Rate of Return and 2.4 year payback period. The FS reaffirms the Project’s viability, demonstrating the strong profitability and economics of the Loma Larga gold-copper-silver project.”

Ms. MacGibbon continued, “Our focus in 2020 is to continue to advance the environmental permitting process with the goal of obtaining the required significant permits for development. The first milestone in the process is the completion and submission of the Environmental Impact Study to the Ministry of Environment . We are working together with the MAE and the Ministry of Energy and Non-renewable Resources to achieve this goal.”

Loma Larga is projected to be a low-cost operation with expected life of mine (“LOM”) cash costs of $559/oz, all-in sustaining costs of $627/oz, and all-in costs of $789/oz. Initial pre-production capital expenditures are estimated at $316 million, with sustaining capital of $71 million and closure costs of $22 million (including taxes and duties). The projected 12 year mine life and forecasted life-of-mine mined production remains unchanged. Average yearly mined production is forecasted at 223,000 gold equivalent ounces, with an average of 289,000 gold equivalent ounces mined during the first four full years.

Ms. MacGibbon added, “Loma Larga is a relatively simple mining project which will incorporate environmental management initiatives that will provide for the stewardship of water, flora and fauna. We are committed to executing the development of Loma Larga in a socially responsible and environmentally sustainable manner. The underground mine and related processing infrastructure have been designed to have a very minimal footprint, with an estimated disturbance area of less than 65 hectares at the Project site. The process plant and tailings facility designs, including the use of paste backfill and a filtered tailings disposal method, along with the use of recycled water in the plant and controls for surface run-off, will serve to minimize the use of surface water and reduce the treated water discharge. Management expects to extract no more water from existing water sources during mining operations than was approved during the exploration phase.”

She further added, “Loma Larga is one of five strategic mining projects identified by the Government of Ecuador and will be the next large-scale mining development project to be financed and permitted in the country, following upon the success of the Fruta del Norte gold project by Lundin Gold Corp. With the demonstrated strong support of the Ecuadorian government and our surrounding local communities, INV Metals plans to aggressively move the Project forward aiming to break ground in 2021 with the goal of achieving first gold concentrate production in late 2022. The positive social and economic impacts will be important both locally and nationally, and will provide exciting new employment, training, procurement and business opportunities throughout the region.”

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Posted By : Rabi Wangkhem on Wed, 01 Apr 2020
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