11th Oct 2013 09:23
LONDON (Alliance News) - Avocet Mining PLC Friday said it has commenced its mining licence application in the Republic of Guinea after positive feasibility study results.
The gold mining and exploration company, working exclusively in West Africa, said its Tri-K feasibility study has confirmed a strong grade low cash cost operation in the Republic of Guinea.
The tests provided the company's first ore reserve estimate at the site of 7.9 million tonnes of ore at 1.89 grams per tonne of gold, representing 480,000 contained ounces.
Avocet said tests revealed that the site can work at an annual production of 55,000 ounces over a seven year life of mine, with total cash costs including royalties of USD787 an ounce and total capital costs of USD88.5 million.
The company said it sent an environmental and social impact assessment for the site to the government in July and is now moving towards its mining licence at the site.
Avocet shares were down 6.3% to 15.00 pence Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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