Moss Lake Gold Mines release a preliminary economic analysis (PEA) of its namesake gold property in northwestern Ontario.
In a July 29 release, the Toronto junior released a consultant's report presenting a scenario for an open pit mine with a ten-year life, averaging 244,000 ounces per year, along with a 40,000-tonne per day processing mill. The pre-production capital costs are pegged at $543 million.
The property has an indicated resource of 1.4 million ounces and 1.7 million ounces of inferred.
The Moss Lake property is 100 km due west of Thunder Bay near the community of Kashabowie.
The consultant said the PEA demonstrates a “marginally economic project for the deposit” and recommends additional study to increase the resource base.
Environmental baseline studies will be needed at the start of the pre-feasibility study to identify site conditions and environmental sensitivities.
“This analysis provides a reasonable basis to assess the potential economic viability of the Moss Lake gold deposit,” said company president George Mannard in a statement. “These exercises, regardless of their stage from PEA through final feasibility, require the projection of commodity pricing and financial conditions well into the future – the future has not been written yet. We believe strongly that the future holds higher gold prices.”
