"We have about 500,000 ounces that are shallow and at a higher grade and we are working on a mining plan to start with a CIL [carbon-in-leach] process and defer the production of a concentrate in the middle of the jungle and getting it out to market," he said.
Munson said the company was close to completing a preliminary economic assessment on this option to reduce the US$$550 million pre-production capex outlined in the initial 2013 pre-feasibility study to a more manageable level.
He believes the debt is available for the development, although raising the equity portion will present more of a challenge. "The sources to do that will not be the public equity market," he said.
Munson has been watching the corporate-level developments at Guyana Goldfields' nearby Aurora mine with interest. With new board members being appointed and the company searching for a new CEO, he believes there may be the possibility of the two companies working together more closely in the future.
"There are a lot of synergies that we can exploit from stronger coordination between Sandspring and Guyana Goldfields to overcome our infrastructure challenges," he said.
Shares in Sandspring Resources (TSXV:SSP) were trading at C17c (US12.62c) Thursday, valuing the company at $35 million. Its share price has fallen 29% so far this year.
