GOLD: Fiore grows Gold Rock project resource

NEVADA - Fiore Gold has presented a preliminary economic assessment for its Gold Rock project in Nevada and provided an updated mineral resource estimate and a base case assessment for developing the project as a satellite open-pit operation that will share significant infrastructure and management with the adjacent Pan Mine. Indicated resources increased by 69% to 403,000 oz. gold, while inferred resources were estimated at 84,300 oz. gold, with potential to grow the inventory with the next phase of drilling. The PEA also identified opportunities to enhance the project economics as Gold Rock advances to the feasibility stage through drilling to increase resources, further metallurgical testing to improve recoveries as well as geotechnical drilling aimed at reducing the strip ratio. The analysis set the mine life at 6.5 years with total gold production of 362,750 oz., averaging 55,800 oz. annually. Life of mine (LOM) cash costs were calculated at $903 per oz. with LOM all-in sustaining costs at $1,008 per oz. The study also forecasts that pre-production capital expenditures should reach $64.6 million, sustaining capital expenditures $7 million and reclamation costs $16 million. “This PEA represents the first-ever economic and technical analysis of mining at Gold Rock and shows the project can deliver solid returns for modest capital investment. Gold Rock would be built and run by the same Fiore technical team who transformed the adjacent Pan Mine into one of the most successful small gold mines in Nevada,” Fiore’s CEO, Tim Warman, said in a media statement. “Leveraging the management talent and infrastructure already in place at Pan offers a number of capital and operating synergies, and the shared mine administration and management will lower the G&A burden for both projects.” Gold Rock is located approximately 12 km southeast of Fiore’s Pan Mine in Nevada’s White Pine County.