Freeman Gold launching feasibility study at Idaho project
Freeman Gold Corp. [FMAN-TSXV, FMANF-OTCQX, 3WU-FSE] has appointed Ausenco Engineering Canada ULC to lead a feasibility study at the company’s Lemhi Gold Deposit in eastern Idaho.
The company said the recent strength in precious metal prices has positively impacted the economic metrics of the project given its strong leverage to the price of gold.
“Using the current spot gold price, Lehmi would have a US$1,900 per ounce cash margin at the production schedule and all-in sustaining cost envisioned in the PEA,’’ said Bassam Moubarak, the company’s CEO. “This initial feasibility study should quantify the positive economic impact of gold moving from the US$1,750 per ounce 2023 PEA price to nearly US$2,850 per ounce spot price. Additionally, the study will provide a clear road map through permitting to a construction decision,’’ he said.
The Lemhi project covers 30 square kilometres of highly prospective land, hosting a near-surface oxide gold resource.
The feasibility study will build upon a 2023 preliminary economic assessment (PEA), which demonstrate that Lemhi has the potential to become a profitable low-cost gold producer, with average annual gold production of 75,900 ounces over a 11.2 lifespan. The PEA indicated that Lemhi has a life of mine payable output of 851,900 ounces of gold and average annual production of 80,100 ounces in the first eight years of production.
The PEA envisages that with an average operating cost of US$21.53 per tonne milled over the life of the mine, the operation has a cash cost of US$809 per ounce of gold and an all-in-sustaining cost of US$957 per ounce. The initial capital cost is pegged at US$190 million.
The deposit is amenable to open pit mining practises, with two years of construction followed by 12 years of operations.
The production strategy outlined in the 2023 PEA consists of a phased development with an increase in throughput during the fifth year of operation, with a flow-sheet utilizing a carbon-in-leach (CIL) processing facility. The objective of the study has been to maximize the value of Lemhi while minimizing the footprint and environmental impact.
Meanwhile, the planned feasibility study will be based on a 2023 mineral resource estimate. It outlined a NI-43-101-compliant pit constrained resource stands at 988,100 ounces at 1.0 g/t gold in 30.02 million tonnes of measured and indicated material. On top of that is an inferred resource of 256,000 ounces of gold at 1.04 g/t gold in 7.63 million tonnes. The company has said it is focused on growing and advancing the project towards a production decision.
The shares were unchanged at $0.085 on Tuesday and trade in a 52-week range of 19.5 cents and $0.065.