Fiore Gold (TSXV: F) presented a preliminary economic assessment for its Gold Rock project in Nevada and provided an updated mineral resource estimate and a base case assessment for developing the project as a satellite open-pit operation that will share significant infrastructure and management with the adjacent Pan Mine.
According to Fiore, the PEA reveals a 69% increase in indicated resources to 403,000 gold ounces, while inferred resources were estimated at 84,300 gold ounces, with potential to grow the resource with the next phase of planned drilling.
Fiore plans to run an extensive program of large-diameter core drilling, geotechnical drilling, metallurgical testing and the overall process and project optimization for the next phase of work at Gold Rock
The PEA also identifies a considerable number of opportunities to enhance the project economics as Gold Rock advances to the feasibility stage by drilling to increase the mineral resource, further metallurgical testing aimed at improving recoveries, and geotechnical drilling aimed at reducing the stripping ratio.
The analysis set the mine life at 6.5 years with life of mine total gold production of 362,750 ounces, averaging 55,800 ounces annually. LOM cash costs were calculated at $903 per ounce of gold and LOM all-in sustaining costs at $1,008 per ounce of gold.
The study also forecasts that pre-production capital expenditures should reach $64.6 million, sustaining capital expenditures $7 million and reclamation costs $16 million.
“This PEA represents the first-ever economic and technical analysis of mining at Gold Rock and shows the project can deliver solid returns for modest capital investment. Gold Rock would be built and run by the same Fiore technical team who transformed the adjacent Pan Mine into one of the most successful small gold mines in Nevada,” Fiore’s EO, Tim Warman, said in a media statement. “Leveraging the management talent and infrastructure already in place at Pan offers a number of capital and operating synergies, and the shared mine administration and management will lower the G&A burden for both projects.”
Gold Rock is located approximately eight miles southeast of Fiore’s Pan Mine in Nevada’s White Pine County.