Bellavista results
Wheaton River Minerals Ltd
WRM
Shares issued 30390348
1998-04-22 close $0.46
Thursday Apr 23 1998
Mr Ian McDonald reports
Wheaton River has received the results of a detailed prefeasibility study on its
100% owned Bellavista gold project in Costa Rica. The study indicates that a
profitable open pit and underground gold mine can be constructed at the site and
produce gold, using heap leach processing, at a total cash cost of US$168 per
ounce.
Bikerman Engineering and Technology Associates of Mansfield, Connecticut,
conducted the study. David Bikerman, president, was instrumental in the
development of a number of heap leach operations in Central America when he
was vice-president, engineering for Greenstone Resources. Also contributing to
the study were Golder Associates on heap leach pad stability and design, and
McClelland Laboratories on metallurgy and processing.
The study examines two scenarios for production, the first mining only the open pit
reserves and the second including additional production from the underground
resource. The underground deposit requires infill drilling to upgrade it to reserve
status. The study estimates that the Bellavista project can achieve the following
pre-tax results, based on a US$350 per ounce gold price over the life of the mine:
Open Pit Open Pit &
Only Underground
-------- -----------
Capital costs
($ million) $21.8 $34.4
Operating cost per
tonne - ore $6.74 $7.75
Cash operating
costs/oz gold * $163 $151
Total cash costs/oz
gold * $181 $168
Total production
costs/oz gold * $239 $231
Internal rate of
return 29.0% 28.2%
Net present value
(5% DR) (million) $27.9 $41.6
Net present value
(10% DR) (million) $17.7 $25.3
Gold recovery 75.5% 75.7%
Annual Ore
Production
(million tonnes) 1.35 1.35
Average annual gold
production (ounces) 51,500 64,000
Total gold
recovered (ounces) 386,400 557,700
Life of mine
(years) 7.5 8.7
* Using Gold Institute guidelines. All
monetary figures in US dollars.
Proven and probable reserves and mineable
resource estimates for Bellavista are as
follows:
Grade Contained Strip
Tonnes (g/t) Ounces Ratio
------ ----- --------- -----
Open Pit (Mineable Reserves)
9,590,000 1.66 511,800 1.28:1
Underground (Mineable Resource)
2,252,000 3.70 267,900 N/A
It is Wheaton River's intention to commence a 7,600 metre underground infill
drilling program in June aimed at placing the underground mineable resource into
the reserve category. Drill spacing is currently on approximate 50 metre centres
and the planned program will reduce this to 25 metre centres.
The results of that drilling will be incorporated into the final feasibility study, which
is scheduled for completion in early 1999. The project schedule includes finalizing
permitting and financing arrangements in 1999 and a one year construction phase
beginning late that year. Wheaton River is well financed to bring the project to the
final feasibility stage. |
