Minerals explorer and developer Bezant Resources plc (LON:BZT) has confirmed to investors it is targeting first production at its Choco alluvial gold-platinum project this quarter.
Only a couple of weeks ago Bezant raised £1mln to allow it to do just that.
READ: Bezant raises funds for Choco
Mine development, plant acquisition and commissioning are also scheduled to be carried out over the coming 12 weeks or so at the Western Colombian project.
The latest results from the mine show that the gold and platinum recovery grades are “well above” the 0.17 grams per tonne (g/t) breakeven point determined by last month’s scoping study.
READ: Bezant Resources confident on Choco potential after study
The average combined volume weighted grade of the 37 samples collected in the latest round of testing was 0.235g/t, with one sample returning a grade of 1.23g/t.
“These Phase 2 recovery results demonstrate the consistent levels of gold and platinum occurring in areas previously untested for precious metals and compare favourably with our Phase 1 results that were used to verify mining data from historic operations,” said chairman Ed Nealon.
“We are now in the process of focusing on the development of our first full-scale platinum and gold production operation that we have targeted for commissioning during the second quarter of 2017.”
The scoping study, released in March, showed the alluvial mine can produce at well below the current market price.
Estimated 5-year average production costs were below US$800 per ounce for both platinum and gold produced, a better outcome than the junior anticipated.
Forecast annual production is admittedly small at 2,200oz of platinum and 1,467oz of gold, but that still produces a net present value (rolled up cash flows) of US$323,000 and US$2.8mln over one and five years respectively.
Shares opened higher at 1.1p on Monday morning.
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