Project Summary
- Cerro Resources, through its majority controlled subsidiary SAM, has defined a large copper-gold-silver resource at Cerro del Gallo. The copper resource contains 1.4 billion lbs of copper. Cerro has chosen to first develop the gold-silver portion of the deposit that is easily treatable by conventional heap leaching. As fresh rock, sulphide bearing material, is exposed by the open pit operation, a carbon-in-leach (CIL) process plant will be added to the circuit to treat the fresh rock material and fully capitalise on this gold resource.
- The Cerro del Gallo resource contains proven & probable reserves of 32.2Mt for the first 8 years of heap leaching at grades of 0.69 g/t Au (0.71Moz) and 14.8 g/t Ag (15.4Moz).
- The resource contains additional in-pit measured & indicated resources of 45.0Mt at grades of 0.66 g/t Au (0.95Moz) and 13.83 g/t Ag (20Moz).
- Total reserves and in-pit resources are 77.2Mt grading 0.67 g/t Au (1.66Moz) and 14.2 g/t Ag (35.4Moz).
- Pit design and optimisation work from the feasibility and preliminary assessment, indicates a low strip ratio of 0.74:1 with a mine life of 14 years.
- The overall copper-gold-silver resource is defined by 354 drill holes totaling 95,979m.
- The feasibility study economic evaluation for the stage 1 heap leach only using past 2 year average metal prices as at 31stMarch (US$1,157/oz gold, US$19.81/oz silver) generates a pre-tax operating cash flow of US$214 million, with a payback period of 1.9 years, a 44.1% IRR, and a net present value of US$142 million at a project discount rate of 6%.
- The preliminary assessment economic evaluation for the stage 2 heap leach/CIL only using past 2 year average metal prices as at 31stMarch (US$1,157/oz gold, US$19.81/oz silver) generates an additional pre-tax operating cash flow of US$302 million, and a net present value of US$142 million at a project discount rate of 6%.
- The project is located in a region of Mexico where there is an established and developing mining industry.
