Luiri Gold (ASX:LGM) has outlined a maiden probable ore reserve of 1.0 million tons at 2.7 g/t gold for 87,000 ounces at its Dunrobin gold deposit in Zambia.
The ore reserve estimate was made by Coffey Mining based on a gold price of US$1225 per ounce. The company believes that the new estimate carries a much higher degree of confidence as it based on independent estimates of capital and operating costs.
The probable ore reserves have been delineated to satisfy the due diligence requirements of potential funders with 45% of Dunrobin resource metal in the probable ore reserve category.
Luiri Gold holds two mining licences in Zambia covering the historic Dunrobin and Matala gold deposits. The combined current gold resource (measured, indicated plus inferred) at the Matala and Dunrobin deposits is estimated to be 10.53 million tonnes at 2.2g/t of gold, for 761,000 ounces at a 1g/t cut off.
Luiri has already done a feasibility study to ascertain the technical and financial feasibility of the Dunrobin project, with the study considering open pit mining of the Dunrobin deposit and processing 200,000 tons of ore per year by crushing, grinding and cyanide leaching.
Among the technical and economic parametres used by Coffey in determining the ore reserve, included a processing cost of US$24.99 per tonne milled, a mine strip ratio of 4.8:1, a recovery of 97% and a capex of US$17.5 million.
Based on the parametres considered, the average cash cost inclusive of royalties of US$827 per ounce was estimated.
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