Sandspring Resources Ltd. announce it has completed an updated NI 43-101 mineral resource estimate and an updated NI 43-101 Preliminary Economic Assessment for its 100% owned Toroparu Gold Property in Guyana.

The Updated PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the results of the Updated PEA will be realized.

Highlights include:

• Mining of 1.0 million ounces gold at an average grade of 1.2 g/t and 101 million pounds copper at an average grade of 0.18% from the fresh rock mining operation over the first five years of operation.
• $750 million cumulative cash flow during first five years of production at December 31, 2011 three-year trailing average gold price of $1,255/oz.
• Pre-production capital costs of $482 million through development of more capital efficient operation for the first five years of mine life.
• Average cash costs including royalties of $450/oz. gold (net of copper credits) in first five years of operation and $600/oz. gold (net of copper credits) over the 14-year mine life.
• Mining of 4.0 million ounces gold from fresh and saprolite mineralization at an average grade of 1.0 g/t Au over a 14-year mine life at 4.1: 1 strip ratio, and 5.0 million ounces gold over 22-year life of project.
• Definitive Mineral Agreement signed with government of Guyana on November 9, 2011, the terms of which have been incorporated into the Updated PEA.
• Environmental authorization reviewed by Guyana Environmental Protection Agency with no fatal flaws found; and final approval is pending.
• Open pit operations anticipated to commence in 2015.

In commenting on the study update, Richard Munson, CEO of Sandspring stated, "The Updated PEA reflects the results of various engineering tradeoff studies the Company has conducted as part of the ongoing pre-feasibility engineering program conducted by SRK, Jacobs Minerals Canada and P&E Mining Consultants Inc. The higher-grade starter pit scenario has attractive economics that serve to begin the process of unlocking the full potential of Toroparu and Sandspring's holdings in Guyana. The robust financial results highlight the viability of the project and the various build-out options available for the development of the large resource base defined at Toroparu. The Updated PEA indicates life of mine after-tax free cash flows of approximately $1.2 billion at an attractive rate of return while reducing the up-front capital investment required in developing the deposit, all without compromising our ability to expand the project to beyond 30,000 tpd. Drilling conducted since September 2011 which has not been included in the PEA looks promising and could add to the growing resource and potential mine development. The Updated PEA will serve as the basis for further detailed engineering and we look forward to rapidly advancing the Toroparu project in 2012."

More information, click here.

Bookmark this page!