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Jr. Daily: No Gramalote feasibility for now, Kirkland at breakeven & more

We highlight the day’s key junior developments.

Gramalote economics: Not good enough to move forward to feasibility for now. That was the conclusion B2Gold (TSX:BTO; NYSE: BTG) came to outlining scoping study results of the Gramalote gold project in Colombia, 49-percent owned by it and 51-percent owned by AngloGold Ashanti. 

Headline numbers were: 317,500 ounces gold in yearly production, on average, over 14-year mine life; pre-production capital costs of $1.2 billion; and 11.5 percent after-tax IRR with estimated operating costs coming out to $736 an ounce gold.

“At current gold price levels, the Gramalote project economics are positive but at this time do not move the project to the top of the (B2Gold)’s priority list for continued development towards a feasibility study,” B2Gold stated. It said it would take another look at the question of whether to move Gramalote to feasibility in the fourth quarter 2014.

In junior mining Nevsun Resources (TSX; NSYE:NSU) reported its year end financials with $420 million in working capital. Revenues were $156 million in 2013 compared to $566 million the year previous with, respectively, net income of $29 million versus $247 million. In 2013 Nevsun transitioned from gold to copper-dominant production and this year aims to produce some 200 million pounds copper in concentrate from a high-grade copper horizon of its Bisha deposit in Eritrea.

And Kirkland Lake Gold (TSX: KGI) said it was operating near breakeven at its gold mining operations in Ontario where it produced 31,022 ounces gold in the third quarter of its 2014 fiscal year. It reported $1,923 an ounce gold in all-in cash costs, or $1,094 an ounce gold in total cash costs for the quarter. Clearly costs remain high for Kirkland, but it said all-in cash costs had dropped significantly in the January to just over $1,500 an ounce gold and said it expected to maintain that level to year end (fiscal 2014).

To exploration: In the Athabasca Basin Fission 3.0 (TSX-V: FUU) outlined new claim staking of properties where it plans to employ exploration methods that helped its management find the the Patterson Lake South uranium deposit owned by Fission Uranium, of which Fission 3.0 is a spinout.

UPDATES HERE AS THEY WARRANT

 

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