Mexican Gold Mining Corp. (TSXV:MEX) is pleased to announce a positive Preliminary Economic Assessment (PEA) for its 100% owned Las Minas Project in south-eastern Mexico.
The company also announces a new mineral resource estimate, prepared in accordance with National Instrument 43-101, of 443,000 gold equivalent ounces within indicated resources of 4.13 million tonnes at grades of 1.96 g/t gold, 4.64 g/t silver, 1.08% copper, 14.77% magnetite and 361,000 gold equivalent ounces within inferred resources of 5.20 million tonnes at grades of 1.44 g/t gold, 5.97 g/t silver, 0.95% copper, 17.54% magnetite, all reported at a US$80 per tonne Net Smelter Return (NSR) cut-off.
“We are delighted with the economic results for our Las Minas project which is based off our drilling to date at Las Minas,” CEO and Director, Philip O’Neill, said.
“This PEA study demonstrates robust economics with modest initial capital and positive economic returns for the development of an initial mining operation at Las Minas.
“The company believes there is significant resource upside with further drilling at Las Minas both in the immediate area of the existing resource and through exploration of multiple other targets on the mine property.
“In addition to continuing advancement towards development to production and positive cash flow, the company will continue to aggressively explore with the objective of building a larger resource base.
“With success we believe there is good potential to significantly increase the project economics above the base we have now established.
“There are a number of precedent operations in Mexico that have started at a more modest throughput rate based on an initial resource base and then expanded throughput and cash flow as additional resources have been defined through further exploration. Capstone’s Cozamin mine is one example.”
Matt Liard, VP Exploration for Mexican Gold, said the resource and stope modelling in the PEA show that there is opportunity to bring further tonnage into the resource and to bring further resource tonnage into the mine plan through infill drilling.
“Several areas have been identified which show potential for additional tonnes with a tighter drill pattern. In particular, the entire northeast and northwest portions of the El Dorado Zone and almost all of the Santa Cruz Zone require attention, along with multiple smaller discrete enclaves and embayments within the main stoping area.
“Near the Las Minas resource (within <1km to the north and northeast) there are several exploration targets on the main El Dorado Zone contact horizon that have only been lightly or partially investigated by drilling. The targets combine either extensive historic mining activity (Cinco Senores and Changarro) or a strong geophysical response (Carboneras) with a geological case for mineral potential. Recent modelling work on the Santa Cruz Zone has provided a breakthrough in the genetic and morphological understanding of this deposit. This new knowledge should allow for much better definition of the existing deposit and highlights “
The mineral potential of the region is well known, being positioned over an active continental subduction zone. Similar geological features and dozens of mineral showings appear over an area of >100km2 centred on Las Minas, and there is strong evidence that the productive El Dorado contact underlies this entire area. The Las Minas area is also surrounded by various mining districts which show every common type of cordilleran mineral deposit.”
The concept for recovery of the Las Minas resource is through multiple underground mining methods at a production rate of 1,400 t/d with the mineralized material being hauled via truck to an underground crusher, where it is then crushed and conveyed to the processing plant. Processing will produce a copper concentrate containing gold and silver.
Additionally, the tailings would be processed to recover magnetite. Tailings after magnetite recovery would be de-watered and pumped underground as cemented paste backfill. Tailings not placed as paste would be trucked to the tailings storage facility (TSF). Production at the mine would ramp up in year 1, maintain full production to the end of year 8, and decrease in year 9 as the deposit is depleted.
For further information please visit: https://mexicangold.ca/