Moneta Gold (TSX: ME; OTC: MEUAF; FSE: MOPA) continues to drill significant gold at its Tower project in the Timmins, Ont., gold camp. The best intersection was from hole MGA22-026 with 4.77 g/t over 11.6 metres, including 27.64 g/t gold over 0.4 metre and 25.95 g/t over 1.5 metre. A cut-off of 0.3 g/t gold was used.
Other notable holes include:
The company completed 11,080 metres of drilling in 30 holes last year. This year’s infill and upgrade program will total 190,000 metres on 50-metre centres.
Moneta has already outlined an indicated resource of 4.5 million oz. gold contained in 150.6 million tonnes grading averaging 0.92 g/t and an inferred resource of 8.3 million oz. contained in 235.7 million tonnes at 1.98 g/t gold. The resources are suitable for both open pit and underground mining.
The preliminary economic assessment for the Tower gold project was prepared last year. Pre-production capital would be $517 million plus sustaining capital of $886 million over a mine life of 24 years. After-tax payback would be 2.5 years. The after-tax net present value with a 5% discount is $1.1 billion, and the after-tax internal rate of return is 31.7% with US$1,600/oz. gold. The mine would produce a total of 4.6 million oz. over its lifetime. The all-in sustaining cost is pegged at US$1,073/oz.
More details about the Tower gold project are posted at www.MonetaGold.com.
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