Maritime Resources Corp (CVE: MAE) says a new report looking at re-opening the past producing Hammerdown gold mine in Canada showed “positive economics, strong internal rate of return, short payback period and significant cash flow”.
Hammerdown was mined by Richmont Mines between 2000 and 2004, while gold prices averaged $325 an ounce.
During that operation, 291,400 tonnes of ore were mined and milled, at an average grade of 15.83 grams per ton (g/t) of the yellow metal.
This latest pre-feasibility study by Maritime shows a mine life of five years, producing around 174,000 ounces at an average of around 35,000 ounces per year.
Assuming a gold price of US$1,250 per ounce, the pre-tax net present value shows $71.2 million with an IRR (internal rate fo return) of 46.8%.
Total development and capital costs for the five-year life of mine was put at $67.8 million.
Maritime chief executive Doug Fulcher said the results of the PFS showed the mine had the potential to convert Maritime into a junior gold producer.
“Through the ongoing partnership and discussions with Rambler Metals and Mining, Maritime hopes to quickly advance Hammerdown towards commercial productions by, utilizing the Nugget Pond gold mill where ore from this deposit was processed in the past.
Rambler and Maritime Resources struck an alliance in 2011 and the former holds a 17% stake in the company.
Fulcher added: “We are confident that with access to the underground workings, combined with a surface diamond drilling program, our understanding of the deposit and the mineralization will significantly increase.
“Being a Canadian asset, Maritime benefits not only from working in one of the safest jurisdictions in the world, but also from selling commodities in US dollars whilst most costs remain in Canadian dollars. This, combined with high grade, low capital costs and low project risks, makes the Hammerdown mineral asset unique amongst its peers.
“With this study now in-hand we will continue our efforts into the permitting aspects of the project while reviewing options to potentially fund the reopening of the Hammerdown Gold mine.”
Story by ProactiveInvestors