Cashed up Luiri Gold (ASX:LGM) is aiming for early gold production from its Dunrobin Project as it reflects on the solid results of a scoping study in June 2012.
Luiri Gold holds two mining licences in Zambia that cover the historic Dunrobin and Matala gold deposits.
The study, which has formed part of a feasibility study underway highlighted that the Dunrobin Gold Project is economically viable at a gold price of US$ 1500 per troy ounce.
The study was based on the existing 13,313 metres drilled and a resource estimate (indicated plus inferred) by Coffey Mining (Perth), of 2.862 million tons @ 2.064 g/t for 190,000 in situ gold ounces.
Using a 95% gold recovery (as indicated by existing testwork on oxide ore), gold production would be expected to average 8,723 ounces of gold production per year.
While at Matala, a scoping study is in progress to compare underground and open pit mining and to establish workable project development parameters. This study is currently based on the existing 27,526 metre3s drilled and a resource estimate by Coffey Mining (Perth), of 7.729 million tons @ 2.286 g/t for 568,000 in situ gold ounces.
Mine scheduling based on typical sub level open stoping mining methods supports a production rate of about 30,000 ounces per year. Open pit mining at similar production rates has also been considered.
The Company is of the belief that the project area has the potential to host over one million ounces to justify constructing a substantial mining and processing operation.
Since the end of the rainy season in March, Luiri Gold has a phase two and three exploration program designed to increase the overall resource inventory from extensions to the Dunrobin ore body plus to establish new resources at Chosa, Shadreck, Eclipse and Matala West.
Phase Three will target discovery drilling from new targets identified from the upcoming aerial survey and additional trenching results.
Luiri Gold held cash of $5.49 million as at 30 April 2012.
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