{"id":1188717,"date":"2020-06-05T15:14:01","date_gmt":"2020-06-05T20:14:01","guid":{"rendered":"https:\/\/resourceworld.com\/?p=58421"},"modified":"2020-06-05T15:14:01","modified_gmt":"2020-06-05T20:14:01","slug":"amarillo-gold-delivers-positive-mara-rosa-feasibility-study","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1188717","title":{"rendered":"Amarillo Gold delivers positive Mara Rosa feasibility study"},"content":{"rendered":"<p>Amarillo Gold Corp. [<a href=\"https:\/\/www.canadianinvestor.com\/stocks\/agc.v\/\">AGC<\/a>-TSXV; AGCBF-OTCQB] has announced the results of a positive definitive feasibility study (FS) for its Posse gold project on its Mara Rosa property in Goias state, Brazil.<\/p>\n<p>The FS supports an open pit mine and carbon-in-leach (CIL) operation with dry stack tailings that has low capital and operating costs and a strong financial return.<\/p>\n<p>Highlights (all dollar figures are in U.S. dollars, unless otherwise noted):<\/p>\n<p>\u2022 Mine life of 10 years.<br \/>\n\u2022 Gold production of 102,000 oz\/year in the first four years, average annual gold production of 84,000 oz.<br \/>\n\u2022 After-tax net present value 5% (NPV 5%) of $183 million, increasing to $360 million using current market rates.<br \/>\n\u2022 After-tax internal rate of return (IRR) of 25%, increasing to 50% using current market rates.<br \/>\n\u2022 Cash cost of $706\/oz, decreasing to $631\/oz using current market rates.<br \/>\n\u2022 All-in sustaining cost (AISC) of $738\/oz, decreasing to $656\/oz using current market rates.<br \/>\n\u2022 After-tax payback of 2.6 years, decreasing to 1.5 years using current market rates.<br \/>\n\u2022 Initial capital cost of $145 million, decreasing to $125 million using current market rates.<br \/>\n\u2022 Gold resources of 1.2 million contained ounces, based on 32 million tonnes grading 1.1 g\/t.<br \/>\n\u2022 Gold reserves of 902,000 contained ounces, based on 24 million tonnes grading 1.18 g\/t.<br \/>\n\u2022 The company has a strong social license to operate. It has received the Preliminary License and a Protocol of Intent to build the Posse Gold Project was signed with the governor of the State of Goias on May 25, 2020.<\/p>\n<p>\u201cWe are very pleased to complete this important milestone in the development of our flagship Posse Gold Project,\u201d said Mike Mutchler, CEO. \u201cWe expect to receive our License to Install in the third quarter of 2020 and complete our construction financing then as well. Our goal is to break ground in April 2021.<\/p>\n<p>\u201cOur recently completed regional exploration program showed the potential to find more near-surface gold deposits, so we hope to extend our mine life in due course,\u201d Mutchler continued. \u201cWith strong support from the Mara Rosa community, the Goias State government, and the federal government of Brazil, we are excited to build and operate the Posse Gold Project for the benefit of all of our stakeholders.\u201d<\/p>\n<p>Summary of key results and assumptions in the definitive feasibility study:<\/p>\n<p>\u2022 Life of mine \u2013 9.6 years<br \/>\n\u2022 Mill throughput \u2013 7,000 TPD<br \/>\n\u2022 Contained ounces \u2013 902,434<br \/>\n\u2022 Average grade (years 1-4) \u2013 1.43 g\/t gold<br \/>\n\u2022 Average grade (life of mine) \u2013 1.18 g\/t gold<br \/>\n\u2022 Total gold produced (oz) \u2013 811,023<br \/>\n\u2022 Av. annual gold production (years 1-4) \u2013 102,023<br \/>\n\u2022 Av. Annual gold production (life of mine) \u2013 84,482<br \/>\n\u2022 Average strip ratio (life of mine) \u2013 4.3:1<\/p>\n<p>The feasibility study shows that the Posse Gold Project is highly leveraged to the price of gold. A 10% increase in the price of gold generates a 30% increase in the after-tax NPV 5%.<\/p>\n<p>SRK Consultores do Brasil Ltda (SRK) compiled the definitive feasibility study with input from other engineering companies and consultants.<br \/>\nThe Posse Gold Project (Posse or the Project) is located on the Mara Rosa Property in the State of Goias, central Brazil, approximately 6 km north of the town of Mara Rosa. The Project encompasses a land area of 2,552 hectares across three mining concessions plus numerous exploration leases in areas surrounding the Posse mine area.<\/p>\n<p>A recently completed regional exploration program on the Mara Rosa Property showed potential to find near-surface gold deposits along the Posse North Trend. Mineralization was discovered up to 4 km northeast of the Posse Gold Deposit, which remains open at depth to the southwest. These mineralized targets to the northeast provide additional opportunities to expand the resources at Mara Rosa.<\/p>\n<p>With the definitive feasibility study now complete, Amarillo can work with its financial adviser, Auramet International LLC, on financing the Project. Preliminary discussions have already begun with various interested parties.<\/p>\n<p>The company has applied for its License to Install, which it expects to receive in the third quarter of 2020.<\/p>\n<p>Amarillo plans to start acquiring bids for a contract to provide engineering and procurement support for the Project.<\/p>\n<p>Construction-level engineering and procurement will begin shortly, with the goal of starting construction in April 2021, commissioning in the third quarter of 2022, and targeting commercial production in the fourth quarter of 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amarillo Gold Corp. [AGC-TSXV; AGCBF-OTCQB] has announced the results of a positive definitive feasibility study&#8230;<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[622],"tags":[48],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1188717"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1188717"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1188717\/revisions"}],"predecessor-version":[{"id":1188718,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1188717\/revisions\/1188718"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1188717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1188717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1188717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}