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Leagold Mining announces files Los Filos Mine expansion feasibility study

Mining News - Published on Fri, 15 Mar 2019

Image Source: steelguru.com
Leagold Mining Corporation announced that it has filed the report entitled "Independent Technical Report for the Los Filos Mine Complex, Mexico" which presents the results of the Expansion Feasibility Study under the Company's profile on SEDAR at www.sedar.com. The Expansion Feasibility Study was prepared by independent consultants and incorporates the potential for: development of the Bermejal underground mine, enlarging the Los Filos open pit, re-phasing of the Bermejal open pit into two distinct sections (Bermejal and Guadalupe), and constructing a carbon-in-leach processing facility to complement the existing heap leach facilities.

Highlights of the Expansion Feasibility Study include:
Gold production of 3.2 million ounces (Moz) over a 10-year mine life (2019 to 2028) at an average AISC1 of $740/oz
Post expansion (2021 onwards):
Average annual production of 350,000 oz at AISC1 of $694/oz o Average annual production exceeding 420,000 oz from 2021 to 2024
Proven and Probable mineral reserves of 104.2 Mt at 1.31 g/t containing 4.5 Moz2
Capital cost of $180 million to develop Bermejal underground and construct a new 4,000 tonne per day (tpd) CIL plant with related infrastructure
Current operations to fund capitalized stripping during the initial expansion phase (2019 to 2020) at the Guadalupe and Los Filos open pits
At $1,250/oz gold price:
NPVo% of $884 million o NPVs% of $679 million o IRR of 86%

Leagold CEO Neil Woodyer commented "Since providing the summary results of the Expansion Feasibility Study in January 2019, our team working with the independent consultants has continued refining the new operating strategy which includes re-phasing the Bermejal open pit, expanding the Los Filos open pit, operating two high-grade underground mines, adding a CIL plant to process the higher-grade ore, and continuing heap leaching of the lower-grade open pit ore. The result of this work is a significant increase in net cash flow to $884 million. The Los Filos expansion is clearly a project we should proceed with, and we are advancing with construction planning, optimizing the sequencing of the major expansion projects as part of our financial planning, and discussing the social and economic benefits created by the expansion with our employees, contractors, unions and community members."

Source :

Posted By : Rabi Wangkhem on Fri, 15 Mar 2019
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