|Location||Durango State, Mexico|
|Land Position||6,100 ha|
|Status||Permits expected H2-2020|
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.
Minera Alamos has received a positive notification from the Mexican environmental authorities (Secretaria de Medio Ambiente y Recursos Naturales – “SEMARNAT”) confirming the successful completion of the technical review phase of the Company’s application (Estudio Tecnico Justificativo – “ETJ”) for the change of land use to construct mining and processing facilities at the Fortuna project area.
The Company has completed the geotechnical studies and design of the “dry-stack” tailings containment facilities for the Project which were submitted to the Mexican Federal Environmental Agency (Secretaria de Medio Ambiente y Recursos Naturales or “SEMARNAT”) as part of the mine permitting process.