OURAY COUNTY: Prospects look positive for Revenue mine's preliminary report
By Sheridan Block
Everything is full steam ahead at the Revenue mine as new owner Fortune Minerals has started to settle in. Last week, the first haul of concentrate was shipped off and delivered to Teck’s Trail Smelter in British Columbia for processing, and on July 24 the company released the results of a Preliminary Economic Assessment (PEA) report for the historic mine.
The PEA report, conducted by SRK Consulting, reveals positive prospects for the company’s new silver mining project, demonstrating a 73.2 percent after-tax Internal Rate of Return (76.4 percent pre-tax), as well as a six percent discounted Net Present Value of $58.8 million (after-tax).
Results of the assessment also reveal mineral resources in the Yellow Rose Vein are estimated at 215,300 tons “measured” (proven of its grade and content), 586,300 tons “indicated” (sampled to a point of reasonable confidence in grade and content), and 684,200 tons “inferred” (estimated but not verified of grade and content). These mineral resources are projected to contain 16.3 million ounces of silver (measured and indicated) and 10.1 million ounces of silver (inferred).
Additionally, the company estimates a mine plan resource (a smaller subset of the larger mineral resource estimates determined by applying mining and economic constraints to mineral resource estimates) of 888,283 tons (diluted) with an average grade of 14.6 ounces of silver per ton, 0.02 ounces of gold per ton, 2.26 percent lead and 0.90 percent zinc. The high silver grades and additional by-product credits for gold, lead, zinc and copper will support a low cash cost (C1) of $10.28 per ounce of silver, inclusive of freight and smelter treatment and refining charges.
The life of mine (LOM) average annual mined production is expected to bring...