Resource and Investment (ASX: RNI) has upgraded Ore Reserves at its Grosvenor Gold Project in Western Australia to 8.79 million tonnes at 1.85 grams per tonne for 523,000 ounces of gold.
This follows the completion of the Stage One mine design and is up from the previous estimate of 275,000 ounces.
The upgrade is due to studies and test work conducted to demonstrate the Heap Leach processing option as a viable method at both Grosvenor and Peak Hill.
Ore Reserves for Peak Hill, which the company has an option to acquire from Montezuma Mining Company (ASX: MZM), have yet to be declared.
The company’s updated Feasibility Study has confirmed average life-of-mine cash operating costs of $A990 per ounce for the Grosvenor and Peak Hill projects.
This is based on production of 850,000 ounces of gold over eight years, generating life of mine revenues of over $1.1 billion and net cash flows of over $200 million.
Payback on pre-production capital costs of $40.5 million is estimated at two years with an IRR of 82%.
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