EXPLORATION & DEVELOPMENT

Minera touts Cerro de Oro PEA as 'game changer'

Minera Alamos has delivered a “game changer” preliminary economic assessment on its Mexican Cerro de Oro gold project, company president Doug Ramshaw said, which includes an after-tax IRR of 111%.

The average annual gold production is projected to be about 60,000oz to 70,000oz in years one through four, with an 8.2 year mine life.

The average annual gold production is projected to be about 60,000oz to 70,000oz in years one through four, with an 8.2 year mine life.

The PEA sees an after-tax NPV5% of US$150.5 million, pre-production capital costs of $28.1 million, and a payback period of 11 months, the company said.

"Leaning on our team's collective experience in mine building in Mexico with capital and operating costs informed by the recent construction and ramp up of the Santana gold mine, the Cerro do Oro PEA is a game changer for Minera as we strive to reach our initial target of a +100,000 ounce/year gold producer," Ramshaw said.

The average annual gold production is projected to be about 60,000oz to 70,000oz in years one through four, with an 8.2 year mine life.

The LOM all-in sustaining cost is set at $873/oz - averaging $763/oz in the first four years.

The Mexico-focused company produced its first gold in October 2021. Its portfolio includes the Santana open-pit, heap-leach mine in Sonora, which is going through an operational ramp-up, and the La Fortuna open pit project in Durango - along with Cerro do Oro in Zacatecas.

Minera's share price climbed 13% day on day to more than a three-month high of C$0.54 (US$0.40) on 4 October. The company has a market capitalisation of C$242.05 million.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.