|Location||Durango State, Mexico|
|Land Position||6,100 ha|
|Status||Positive PEA Released August 2018 - Permits expected early 2019|
M&I: 3,469,711 t grading 2.78 g/t Au, 16.51 g/t Ag and 0.22% Cu
M&I: 309,800 oz Au; 1,842,200 oz Ag; 7,600 t Cu
|Mining & Processing Concept||Open pit mining with gravity circuit & flotation plant processing|
Highlights of the PEA
- Robust economics with after-tax NPV (7.5%) of US$69.8M & 93% IRR
- Five-year mine life on initial resource “starter pit”
- Average annual production of 50K AuEq oz
- Low initial capital costs and rapid payback
- Significant upside potential of resource size and milling capacity
- Opportunities for significant economic improvement by improving gold recoveries and reducing initial capital costs
The 6,200 ha La Fortuna project is located in Durango State, Mexico. Road access is from the city of Culiacán located 85 km southwest in Sinaloa State. Paved road and grid power currently extend to within 30 km of the project with the remaining distance accessed by gravel road.
Minera Alamos acquired 100% of the 4 mining concessions that comprise the La Fortuna project in May 2016 from Argonaut Gold Inc. The concessions are subject to a 2.5% NSR on production to a maximum of US$4.5M payable to Argonaut Gold Inc.