Mineros extends Hemco mine life to 13 years, Nicaragua
Mineros SA [MSA-TSX; MINEROS-Colombia] completed a positive prefeasibility study (PFS) on the Porvenir gold-silver-zinc project on its Hemco property in northeastern Nicaragua, significantly increasing the mine life of the Hemco property mineral reserves from five to 13 years.
In addition to the Porvenir project, the Hemco property includes the Panama and Pioneer mines and produces gold from material purchased from artisanal mining collectives with which the company has a strong collaborative relationship. A new National Instrument 43-101 technical report on the Hemco property will be filed within 45 days of this news release. (All amounts are expressed in U.S. dollars unless otherwise stated.)
Highlights: An eight-year increase of life of mine (LOM) for the Hemco property, from five to 13 years; first-time disclosure of Porvenir mineral reserves as of December 31, 2022: 270,000 tonnes of proven mineral reserves averaging 2.70 g/t tonne gold, 13.6 g/t silver and 3.14% zinc, containing 23,000 ounces gold, 118,000 ounces silver and 19 million pounds zinc; 5,524,000 tonnes of probable mineral reserves averaging 3.09 g/t tonne gold, 10.2 g/t tonne silver and 2.96% zinc, containing 549,000 ounces gold, 1,804,000 ounces silver and 360 million pounds zinc.
Porvenir project base-case economics include an after-tax net present value (using a 10% discount rate) (NPV10) of approximately $42-million, an after-tax internal rate of return (IRR) of approximately 16% and a payback period of approximately four years from start of production in 2027, assuming US$1,500/oz gold, US$19/oz silver and US$1.27/lb zinc.
The Porvenir project will add average annual production over its nine-year mine life of 56,700 ounces gold/year, along with 112,300 ounces silver/year and 38.5 million pounds zinc per year, to the Hemco property.
After-tax net present value (using a 5% discount rate) (NPV5) of $160-million at $1,650/oz gold, $20.90/oz silver and $1.40/lb zinc, increasing to $216-million at $1,800/oz gold, $22.80/oz silver and $1.52/lb zinc.
IRR of 21% and after-tax payback period of 3.5 years from start of production at $1,650/oz gold, $20.90/oz silver and $1.40/lb zinc.
Andres Restrepo, president and CEO, commented: “We are pleased to have reached this milestone for the Porvenir Project, which is a key project in our pipeline of organic growth projects. The advance of the Porvenir Project would allow us to extend the life of mine at the Hemco Property for eight additional years, allowing us to strengthen our presence in the Bonanza-Siuna-Rosita Mining Triangle district.
“This would give us the opportunity to make additional contributions to the sustainable development and the well-being of the communities that embrace us, thanks to the trust that we have built by maintaining high standards of environmental and social responsibility. We are continuing to invest in brownfield and greenfield exploration at our Hemco property, with a view to further expanding the current Mineral Resources and Mineral Reserves and making new discoveries, paving the way for future growth.”
Future work on the Porvenir Project will focus on Mineral Resource conversion and ongoing metallurgical and economic optimization activities.