ANTIOQUIA GOLD INC. : http://www.antioquiagoldinc.com/ : QwikReport |
Cisneros |
Cisneros is 80 km northeast from Medellin, some two hours by paved road and close to infrastructure including high voltage power lines. The property hosts a structurally controlled mesothermal lode gold system. Drilling began in October 2009 and to date the company has drilled over 45,000 metres as it worked to produce an initial mineral resource estimate in August 2013 and updated mineral resource estimate and Preliminary Economic Assessement in 2018 that focused on the Guayabito and Guaico deposits.
For additional details on the Updated Mineral Resource and Preliminary Economic Assessment please refer to the news release of 20th February, 2018
HighlightsIn February 2018, Antioquia Gold published a NI 43-101 compliant Preliminary Economic Assessment and updated mineral resource estimate for Cisneros prepared by Fernando Linares, MAusIMM of Lima, Peru.
The Report has an effective date of September 24, 2017 and the Corporation has filed the complete report on SEDAR.
PEA Highlights
Mineral Resource Estimate
The updated resource estimate incorporates results from 110 drill holes, including results of 14 new drill holes drilled in 2016-2017 and 1130 channels sampled during 2016 and 2017. The mineralized structures, updated with new data are: Nus, Guaico, Footwall-03, Footwall-05, Vega and La Manuela-01. Resources for Guayabito North and Papi, remain unaltered from the 2013 mineral resource estimate.
Updated mineral resources for the Cisneros Properties, above cut-off grade, for all mineralized structures consist of 760,731 tonnes of measured and indicated resources with an average grade of 5.233 g/t Au and 536,211 t of Inferred Mineral Resources with an average grade of 6.345 g/t Au.
Total Measured Resource Estimates for Cisneros Deposits
Deposit Name | Code | Tonnage | Au g/t | Au oz |
---|---|---|---|---|
Nus | NUS | 200,877 | 3.548 | 22,916 |
Guaico | GCO | 26,464 | 7.529 | 6,406 |
Footwall-05 | GCFW5 | 13,596 | 9.759 | 4,266 |
Footwall-03 | GCFW3 | 11,919 | 7.561 | 2,898 |
La Manuela-01 | MNL_1 | 1,133 | 5.237 | 191 |
Guayabito | GBY | 46,370 | 7.700 | 11,479 |
Papi | PAPI | 3,592 | 6.966 | 804 |
Total Measured | 303,951 | 5.010 | 48,959 |
Total Indicated Resource Estimates for Cisneros Deposits
Deposit Name | Code | Tonnage | Au g/t | Au oz |
---|---|---|---|---|
Nus | NUS | 152,181 | 3.057 | 14,958 |
Guaico | GCO | 10,014 | 8.194 | 2,638 |
Footwall-05 | GCFW5 | 9,266 | 9.819 | 2,925 |
Footwall-03 | GCFW3 | 17,745 | 6.929 | 3,953 |
Vega | VEGA | 2,132 | 13.755 | 943 |
La Manuela-01 | MNL_1 | 1,088 | 4.766 | 167 |
Guayabito | GBY | 211,887 | 7.268 | 49,511 |
Papi | PAPI | 20,338 | 3.345 | 2,187 |
Total Indicated | 424,652 | 5.661 | 77,282 |
Total Measured + Indicated Resource Estimates for Cisneros Project
Deposit Name | Code | Tonnage | Au g/t | Au oz |
---|---|---|---|---|
Nus | NUS | 353,058 | 3.337 | 36,640 |
Guaico | GCO | 36,478 | 7.711 | 8,749 |
Footwall-05 | GCFW5 | 22,861 | 9.783 | 6,957 |
Footwall-03 | GCFW3 | 29,665 | 7.183 | 6,628 |
Vega | VEGA | 2,132 | 13.755 | 912 |
La Manuela-01 | LMN1 | 2,221 | 5.006 | 346 |
Guayabito | GYB | 258,258 | 7.345 | 59,003 |
Papi | PAPI | 23,930 | 3.888 | 2,894 |
Total Measured + Indicated | 728,603 | 5.389 | 122,129 |
Total Inferred Resource Estimates for Cisneros Deposits
Deposit Name | Code | Tonnage | Au g/t | Au oz |
---|---|---|---|---|
Nus | NUS | 103,445 | 2.984 | 9,924 |
Guaico | GCO | 6,069 | 8.059 | 1,572 |
Footwall-05 | GCFW5 | 6,213 | 12.628 | 2,522 |
Footwall-03 | GCFW3 | 11,007 | 9.171 | 3,245 |
Vega | VEGA | 5,533 | 13.364 | 2,378 |
La Manuela-01 | MNL_1 | 1,128 | 3.140 | 114 |
Guayabito Sur | GBY-SUR | 57,973 | 7.535 | 14,044 |
Guayabito | GBY | 232,911 | 8.075 | 60,468 |
Papi | PAPI | 111,932 | 4.201 | 15,120 |
Total Inferred | 536,211 | 6.345 | 109,388 |
Underground Mining
The base case scenario for the Project includes mining of measured, indicated, and inferred mineral resources with underground Cut and Fill ( C&F ) and Longhole Open Stoping mining methods.
Preliminary assumptions for Cut and Fill Mining method is that it is a selective mining process. The dilution for veins lower than 0.8 metres in width were not considered as part of the block modelling process for veins on Cisneros projects. Block model are diluted to 0.8 m and no additional dilutions were considered for the mine plan in these preliminary evaluations.
The mining recovery factor is depended on results of rock mechanics studies. For every 100 vertical metres it is suggested to leave a nine metre horizontal pillar which will be dependent on the vertical extent of each vein’s geometry. The following table shows the dilution and mining recovery factor for C&F mining based on specific calculations that were considered for dilution and mining recovery factors during mine plan scheduling.
Mining Recovery Factor for Cut and Fill mining
Assumptions | Guaico Veins | FW3 Vein | FW5 Vein |
---|---|---|---|
Dilution on veins < to 0.8 m thickness | 0% | 0% | 0% |
Mining Recovery Factor | 96.7% | 93% | 93.3% |
A mining recovery of 92% is assumed for longhole open stoping Mining. The mining recovery factor is depended on rock mechanics recommendations. Again it is suggested to leave a nine metre horizontal pillar for every 100 vertical metres.
Process Plant
The objective of the metallurgical process is to obtain gravimetric concentrates and flotation concentrates in a plant with a capacity of 500 tonnes per day (tpd). The plant will be composed of a single production line in two conventional processes namely gravity followed by flotation to obtain sulphide concentrates containing gold.
The process plant has been designed to operate 347 days per year and treat 500 tonnes of material daily. The average head grade is estimated to be 6.43 g/t Au and an overall recovery of 90% is anticipated. Mineable resources have been estimated at 784,763 tonnes with a life-of-mine ( LoM ) of five years. A stockpile of 19,402 tons, resulting from development of stopes in the Guayabito and Guaico-Nus areas will be maintained for the commissioning of the plant.
The general flow sheet of the plant process consists of four sections to produce gold concentrates. These include primary and secondary crushing, grinding and gravity, flotation and concentrate filtration.
Capital and Operating Costs
The total preproduction and sustaining capital cost estimated for the Cisneros project is US$ 75.5 M and includes expenses incurred from 2014 to March 2018. Preproduction capital cost is US$ 61.5 M and sustaining capital cost is US$14.1 M. Capital costs include a contingency of 15% (US$ 7.8 M).
The capital cost profile for the Cisneros Project includes pre-production and sustaining capital. Sustaining capital includes expenses incurred during the expected production period of April 2018 to 2022. All capital costs were estimated for a 3,000 tonnes per month mill capacity.
Economic Analysis and Cash Flow Results
A pre-tax and post-tax cash flow model was developed for the Cisneros project. The financial evaluation presents results for Net Present Value (“NPV”), Internal Rate of Return (IRR) and payback period. All the evaluations include only CAPEX and Sustaining capex from 2017 to LoM and a contingency of 15%. Capital expenditures prior to 2017 of US$13.2 M are included as indicated in the audited financial statements of Antioquia for 31-Dec-2016. The results show that the project has a pre-tax IRR of 24.0% and pre-tax NPV of $23.7M and post-tax IRR of 18.7% and post-tax NPV of $16.7 M.
Cisneros Gold Project economic model summary
Descriptions Input / Output | Units | Value |
---|---|---|
Financial Input | ||
Price | US$/oz | 1250 |
Exchange Rate | COP:USD | 2910 |
Discount Rate | % | 5.0 |
Processing Schedule | ||
Total Ore Milled | k-tons | 785 |
Au Grade | g/t | 6.4 |
Au Recovery | % | 0.93 |
Recovered Au | k-oz | 150.9 |
Payable Au | k-oz | 147.3 |
Capital Cost | ||
Sustaining Capex | US$ M | (12.22) |
Capex 2017-LoM | US$ M | (39.80) |
Total Capex 2017-LoM | US$ M | (52.02) |
Contingency | US$ M | (7.80) |
Total Capex 2017-Lom | US$ M | (59.82) |
Capex previous to 2017 | US$ M | (15.71) |
Pre-Tax CF | ||
Undiscounted pre-Tax Cash Flow | US$ M | 33.54 |
Pre-tax IRR | % | 24.0% |
Pre-tax NPV (5%) | US$ M | 23.71 |
Payback | year | 2.60 |
Post-Tax CF | ||
Undiscounted post-Tax Cash Flow | US$ M | 25.58 |
Post-tax IRR | % | 18.7% |
Post-tax NPV (5%) | US$ M | 16.75 |
Payback | year | 3.20 |
Cash costs of production are estimated at US$697 /oz with all in costs including closure and capital costs estimated at US$1,146 /oz
Operating Cost Analysis
Expenses | US$ (M) | Unit Cost US$/oz |
---|---|---|
On Site Mining Cost | 74.61 | 506.5 |
On Site Mining G & A Cost | 11.30 | 76.7 |
Royalties | 7.06 | 47.9 |
Social and Permit Cost | ||
Smelting, Refining and Transport | 9.74 | 66.1 |
Cash Cost | 102.71 | 697.3 |
Closure Cost | 1.55 | 10.6 |
Sustaining Capital | 14.05 | 95.4 |
All-in sustaining costs AISC | 118.31 | 803.2 |
Preproduction Capital expenses | 50.56 | 343.3 |
All in costs AIC | 1146.5 |
Sensitivity Analysis
The NPV is most sensitive to metallurgical recovery, gold price and gold grade and less sensitive to OPEX and CAPEX.
Cisneros Project Post-Tax @ 5% NPV Sensitivity Analysis
% Variations | Price (US$M) |
Opex (US$M) |
Capex (US$M) |
Au Grade (US$M) |
Exchange Rate (COP$/US$) |
Recovery (US$M) |
---|---|---|---|---|---|---|
70% | -24.2 | 32.8 | 30.7 | -25.3 | 15.6 | -25.3 |
80% | -8.3 | 27.4 | 26.0 | -9.0 | 16.1 | -9.0 |
90% | 5.4 | 22.1 | 21.4 | 5.1 | 16.5 | 5.1 |
100% | 16.7 | 16.7 | 16.7 | 16.7 | 16.7 | 16.7 |
110% | 28.0 | 11.4 | 12.1 | 28.3 | 17.0 | 25.4 |
120% | 39.3 | 6.0 | 7.5 | 39.9 | 17.2 | 25.4 |
130% | 50.3 | 0.4 | 2.8 | 51.0 | 17.3 | 25.4 |
Subsequent Drilling after PEA Effective Date
During the preparation of the PEA an exploration campaign was carried out with diamond drilling from surface. A total of 2,912.00 meters were drilled in the areas of Guayabito, Nus and Guaico. 2,344.20 metres of drilling were included and reported in the PEA and 567.80 meters were not reported in the PEA as results were obtained after the effective date of the PEA. AGD’s management believes the results of these drillholes will not materially impact the PEA results.
Drill Hole Highlights
Drill Hole | From (m) | To (m) | Length (m) | True Width (m) | Au ppm |
---|---|---|---|---|---|
GCO17-038 | 101.00 | 101.50 | 0.50 | 0.29 | 12.34 |
GCO17-038 | 109.80 | 111.00 | 1.20 | 0.69 | 1.59 |
GCO17-038 | 135.50 | 136.30 | 0.80 | 0.44 | 2.23 |
NUS17-011 | 98.20 | 99.20 | 1.00 | 0.48 | 2.28 |
NUS17-012 | 119.00 | 120.00 | 1.00 | 0.54 | 2.82 |
NUS17-013B | 101.40 | 102.00 | 0.60 | 0.33 | 1.03 |
Drill Hole Specifications
HOLE | EAST_UTM | NORTH_UTM | ELEV (M) |
TOTAL DEPTH |
AZIMUTH | DIP |
---|---|---|---|---|---|---|
NUS17-011 | 485595.85 | 721979.64 | 1456.93 | 120.00 | 178.00 | -59.00 |
NUS17-012 | 485533.97 | 721979.01 | 1495.25 | 122.30 | 178.00 | -59.00 |
NUS17-013B | 485481.97 | 721979.10 | 1530.36 | 170.50 | 174.00 | -60.00 |
GCO17-038 | 485910.28 | 722270.36 | 1301.74 | 155.00 | 129.60 | -55.00 |
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