Amarillo Gold Commences Pre-Feasibility Update at Mara Rosa Project, Brazil
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Amarillo Gold Corp. has commenced an update of the 2011 pre-feasibility study (PFS) on the Posse deposit at its Mara Rosa Project in central Brazil.
SRK Consulting has been selected to carry out the study, using their Belo Horizonte based team. ONIX Engineering & Consulting also base in the Belo Horizonte area have been retained to provide cost estimations on the equipment and plant.
Since the PFS on Posse by Coffey Mining in 2011, a number of criteria have changed which the company considers warrant an updated economic model. In addition to renewing external inputs SRK will include a recalculation of the reserve figure given that the resource update increased the combined measured and indicated ounces and the pit shape will differ due to changes of the pit slope based on the 2013 geotechnical study and other factors. Optimization studies will also be carried out, using various equipment types, scheduling and stockpiling scenarios.
SRK have indicated that the base case gold price to be used in the updated economic model will remain at US$1,200 per ounce, this will allow easy comparison between the studies, likewise a spread of gold prices will be given in a sensitivity analysis similar to the 2011 PFS. The same mill throughput of 2.5 million tonnes a year will also be used.
With regard to mining costs a 2nd scenario where a contract fleet would be used rather than an owners fleet has also been requested as part of the new study.
After release of the PFS update, expected in the first quarter of 2017, SRK will be retained to evaluate further measures to reduce CAPEX such as using a smaller plant throughput or staged builds, after which time Amarillo will seek tenders to engineering consulting firms to complete a feasibility study.
To read more details in the company’s press release, CLICK HERE
About Amarillo Gold
Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. It is the company’s policy to strive to do this in a sustainable, safe way using best practices whilst benefiting our shareholders and the communities we work in. The company’s principal projects are the Mara Rosa Project in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande do Sul.
To stop by Amarillo Gold’s website, CLICK HERE
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