Orea-Nord Gold mine plan aims for reduced footprint
Orea Mining Corp. [OREA-TSX, OREAF-OTCQX, 3CG-FRA] shares rallied Wednesday after the company released a new design plan that aims to reduce the environmental impact of extracting its Montagne d’Or gold deposit.
Montagne d’Or, located in French Guiana, France, is a permitting-stage open pit gold mining project that hosts proven reserves of 8.25 million tonnes at 1.99 g/t (530,000 ounces gold gold) and probable reserves of 45.87 million tonnes at 1.50 g/t (2.2 million ounces of gold).
The project is owned 44.99% by Orea and 55.01% by United Kingdom-based Nord Gold SE [NORD-LSE].
A 2017 bankable feasibility study envisions an open pit operation with a 12-year mine life, boasting average annual gold production of 237,000 ounces in the first 10 years at an average grade of 1.73 g/t gold and all-in-sustaining cost of US$749 an ounce. Initial capital expenditures are forecast at US$361 million.
In response to public debate, Orea said it has selected a new project design based on “Best Available Techniques,” resulting in a 32% reduction in surface footprint and 80% reduction in estimated total equivalent C02 emissions.
“The joint venture’s success in optimizing the design of the Montagne d’Or mine, significantly reducing its environmental impact, is the culmination of over two years of additional technical and environmental studies in response to public consultations,” said Orea President and CEO Rock Lefrancois.
“This is undoubtedly a pivotal step for the acceptability and development of an exceptional gold deposit.”
The joint venture completed a comprehensive analysis of the initial bankable feasibility study project design, taking numerous alternatives into consideration before selecting the option that best addressed the concerns brought forth by public debate.
Project modification highlights are as follows:
Power will be generated by an on-site power plant capable of 80% solar-based energy, resulting in a reduction in estimated total equivalent C02 emissions of 469,000 tonnes annually.
The hybrid power plant will reduce the surface footprint of the project, and consequently, reduce the total equivalent C02 emissions by an additional 41,600 tonnes per year.
The tailings storage facility was optimized for safety and durability.
Also, two sections of the 120-kilometre access road were redesigned in order to bypass the town of Saint-Laurent-du-Maroni and improve road safety and facilitate heavy traffic while complying with environmental requirements.
The modifications are expected to shorten the distance to the mine site.
As well, the project’s occupancy of the forest land has been significantly reduced. The total land impacted has been reduced by 32% compared to the initial project design, notably a 44% reduction of the impacted mature forests.
Orea Mining shares advanced on the news, rising 10% or $0.015 to 16.5 cents on volume of 1.18 million. The shares are currently trading in a 52-week range of 20.5 cents and $0.08.