Steppe Gold Ltd. recently announced the filing of an updated Preliminary Economic Assessment (PEA) for its Tres Cruces Oxide Gold Project in Chile. The PEA is based on a mineral resource estimate of 1.2 million ounces of gold in the oxide zone and a further 1.2 million ounces of gold in the sulphide zone.
The PEA outlines a potential open-pit mining operation with a mine life of 10 years and a total production of 1.2 million ounces of gold. The project is expected to generate an average of approximately 80,000 ounces of gold per year over the life of the mine. The project is expected to have a total capital cost of $150 million and an average operating cost of $735 per ounce of gold.
The PEA also outlines a potential underground mining operation with a mine life of 15 years and a total production of 1.2 million ounces of gold. The project is expected to generate an average of approximately 80,000 ounces of gold per year over the life of the mine. The project is expected to have a total capital cost of $250 million and an average operating cost of $835 per ounce of gold.
The PEA also outlines a potential heap leach operation with a mine life of 10 years and a total production of 1.2 million ounces of gold. The project is expected to generate an average of approximately 80,000 ounces of gold per year over the life of the mine. The project is expected to have a total capital cost of $50 million and an average operating cost of $535 per ounce of gold.
The PEA also outlines a potential combined open-pit and underground mining operation with a mine life of 15 years and a total production of 1.2 million ounces of gold. The project is expected to generate an average of approximately 80,000 ounces of gold per year over the life of the mine. The project is expected to have a total capital cost of $400 million and an average operating cost of $735 per ounce of gold.
The PEA also outlines a potential combined open-pit, underground and heap leach operation with a mine life of 15 years and a total production of 1.2 million ounces of gold. The project is expected to generate an average of approximately 80,000 ounces of gold per year over the life of the mine. The project is expected to have a total capital cost of $450 million and an average operating cost of $635 per ounce of gold.
The PEA is based on a gold price of $1,500 per ounce and a foreign exchange rate of 690 Chilean Pesos to the US Dollar. The PEA also includes a sensitivity analysis which shows that the project is robust at a gold price of $1,200 per ounce and a foreign exchange rate of 690 Chilean Pesos to the US Dollar.
The PEA is a positive step forward for Steppe Gold Ltd. and its Tres Cruces Oxide Gold Project. The PEA outlines a potential mining operation with a mine life of 10 to 15 years and a total production of 1.2 million ounces of gold. The project is expected to generate an average of approximately 80,000 ounces of gold per year over the life of the mine. The project is expected to have a total capital cost of $150 to $450 million and an average operating cost of $535 to $835 per ounce of gold. The PEA also includes a sensitivity analysis which shows that the project is robust at a gold price of $1,200 per ounce and a foreign exchange rate of 690 Chilean Pesos to the US Dollar.
