INV Metals is very pleased to announce it has commenced the preparation of the Feasibility Study on its 100% owned Loma Larga gold project, located in Ecuador.
Ms. Candace MacGibbon, CEO, stated, “INV Metals will partner with an outstanding group of professionals to work with our team to achieve our goal to develop the underground mine with anticipated annual gold production of approximately 150,000 ounces over a 12 year mine life, while minimizing our environmental footprint and maximizing the benefits to the local communities. The FS will provide the engineering and economic support to allow INV Metals to proceed with permitting and financing upon completion. The FS is expected to take up to 18 months to complete.” She added, “We continue our progress towards development and plan to commence the engineering required to design and permit the development of the mine adit, related infrastructure and underground ramp to access the Loma Larga ore body to engage in an advanced exploration program, confirm geotechnical conditions and provide employment and training opportunities for the local work force.”
A consortium of consultants led by DRA Americas Inc. (“DRA”) will prepare the FS building upon our Prefeasibility Study prepared in 2016, which resulted in a positive 26.3% after-tax internal rate of return, initial capital of US$286 million, AISC of US$590/oz of gold and an after tax NPV of US$301 million. DRA will supervise the preparation of the FS report and complete the engineering and costing for mining, processing facilities, and infrastructure, along with overall financial modelling. ERM Consultants Canada Ltd. will be responsible for the overseeing and preparation of the environmental, community and social relations, and environmental permitting aspects of the FS. NewFields Mining Design & Technical Services, LLC will advise on waste management, while Itasca Denver Inc. will continue to work on hydrogeological modeling and test work, Mine Design Engineering Inc. (MDEng) will continue its work on geotechnical modelling, and Roscoe Postle Associates Inc. (RPA) will continue to work on resource modelling.
The Company remains focused on exploration and has budgeted $5 million for 2017; of which $3 million is allocated for a drill program at Loma Larga and $2 million is allocated for exploration at our regional properties. INV Metals also continues to aggressively pursue the acquisition of other highly prospective concessions within Ecuador.
The scientific and technical information contained in this press release has been reviewed and approved by Mr. William Shaver, P.Eng, a Licensed Professional Engineer with the Association of Professional Engineers of Ontario, who is a “qualified person” within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects. Please refer to the technical report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador” dated August 29, 2016 (the “Prefeasibility Study”) for additional assumptions and qualifications in connection with the Prefeasibility Study.