Magellan Minerals Ltd. is pleased to announce that it has recommenced the feasibility study on its 100% owned Coringa gold project in Brazil which had been suspended since August 2013. The study is being led by Ausenco Engineering Canada Inc. (Ausenco) and Snowden Mining Industry Consultants (Snowden) and is expected to be completed during March 2015.
Also included as part of the team are Terra Meio Ambiente (Terra), who will continue to manage the environmental components and permitting aspects of the study, Kovit Engineering Limited (Kovit), who are designing and costing the tailings and backfill components of the project and Deswik Mining Consultants (Deswik), who are responsible for mine layout and scheduling. The above group is supported by Magellan staff in Vancouver and Brazil.
Coringa is one of the highest grade undeveloped gold deposits in Brazil. The PEA which was completed in November 2012 returned a post-tax IRR of 33% on a 750t/d underground mine producing an average of 51,000oz per year with a capital cost of $65M and a life of mine grade of 6.7g/t gold.
Commenting on the recommencement of the Feasibility Study, Alan Carter, President and CEO, said, "We are very pleased to be able to recommence the feasibility study on Coringa during extremely difficult market conditions. The recently announced financing is a testament to the quality of the project and the tenacity of the management team and we look forward to keeping shareholders appraised of developments on the feasibility study as they occur."