New Oroperu Resources Inc (CVE:ORO) (OTCMKTS:NOPUF) (FRA:OE6) reported Monday a new resource estimate for its Tres Cruces project in north-central Peru, which showed 425,000 ounces of oxide gold, which could provide for a "standalone" heap leach operation.
This leachable gold could become the 'near term cash flow engine', which would significantly offset initial capital costs for a potential larger mine, the company added.
The new estimate, carried out by independent geologist James N. Gray, showed 425,000 ounces of leachable oxide mineralization (at 1.37 grams per ton (g/t) gold) and 205,000 ounces of deeper leachable sulfide gold mineralization (at 1.12 g/t grade) within a pit-constrained total indicated resource of 2.47 million (m) ounces of gold.
A further 104,000 ounces of gold at 1.26 g/t was placed in the lower-confidence inferred category.
'Standalone' development may be viable
"This break-out of leachable resources suggests that a stand-alone development may be viable on Tres Cruces. We are excited to be taking control of the project and further advancing it through a production scenario," said President of the Vancouver-based explorer Wayne Livingstone in a statement.
"There are also opportunities for us to identify more leachable (oxide and sulphide) gold resources on Tres Cruces, and nearby, which would enhance project economics," he noted.
"In a potential production scenario, the oxide mineralization would be processed first, followed by the leachable sulphides and thereafter the remaining sulphide material would be processed through a plant facility, to be developed at that time. We view this leachable mineralization as a potential near term cash flow engine that could significantly offset the initial capital costs of any larger operation."
Livingstone also highlighted that Tres Cruces was nearby to mining giant Barrick Gold Corp's (NYSE:GOLD) (TSE:ABX) (FRA:ABR) nearby Lagunas Norte mine, which offered the "possibility of operational synergies".
The Tres Cruces project is a grassroots discovery made by the company in 1995. It is a wholly-owned company project, subject to a 1.5% net smelter return (NSR) royalty and subject to an option agreement with Barrick. It is located near three operating mines.
For the resource estimate, the depth of oxide was modelled based on 286 drill holes. Interpolated and actual points were then used to create the lower oxide bounding surface. The same process used 139 holes to generate the bottom of the leachable sulfide surface, noted the company.
Silver has not included in the estimate, but there are silver assays available from some of the project's drill campaigns and silver is shown to be recovered in metallurgical test work, it added.
Shares added 3.45% in Toronto to stand at C$2.40 each.
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