Bezant Resources plc’s (LON:BZT) alluvial platinum mine in Colombia can produce at well below the current market price, a new scoping study has indicated.
Estimated 5-year average production costs were approximately US$700 per ounce for both platinum and gold produced, a better outcome than anticipated said the junior.
“The study only modelled stage 1 of the project, being a single plant operation and the planned staged addition of other plants will greatly enhance our production profile," said Ed Nealon, Bezant’s chairman.
Forecast annual production is admittedly small at 2,200 ounces of platinum and 1,467 oz of gold, but that produces a net present value (rolled up cash flows) of US$323,000 and US$2.8mln over one and five years respectively.
Consultant INGEX based its study on the FKJ-083 mining licence area as that was where historical data is available but Bezant is confident about gravels on similar areas outside of FKJ-083.
INGEX's sensitised financial model was centred around a single near-surface dry mining plant with a processing rate of 1,800m3/day.