Luiri Gold (ASX: LGM) has received an independent Feasibility Study that demonstrates its Dunrobin gold project in Zambia is technically feasible and economically viable in the current gold price environment.
The company expects the report to accelerate its ability to finalise debt negotiations.
Gold production is forecast to be 77,000 ounces over a six year mine life with an initial capital expenditure of US$21 million and cash costs excluding royalty of $766 per ounce.
This also estimated break even costs at US$1,134 per ounce.
The project is estimated to generate total revenues of US$100 million and net pre-tax post-royalty cashflows of US$35 million based on a US$1,300 per ounce gold price over the mine life.
Dunrobin is part of the Luiri Hill Gold Project that is located 125 kilometres west of Lusaka, the capital of Zambia and is centred on the historic Dunrobin & Matala Mines with pre-1980 production of about 31,850 ounces and 7,260 ounces respectively.
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