#Durango wild lands metal processing full
and envisages pre-tax annual free cash flow of $19.3 million ($14.3 million after tax) during years of full production. The PEA was completed by Ausenco Engineering Canada Inc. The all-in-sustaining cost is pegged at US$705 an ounce gold, net of copper and silver credits. The life of mine is forecast at 3.4 years with total production of 53,900 ounces of gold, 75,800 ounces of silver and 1.9 million pounds of copper. On Monday, Tarachi said the PEA pegs the initial capital costs at $11.1 million with a development timeline of 12 months. However, previous operators were challenged by the existence of some copper which requires the extraction process to be modified. The mill was originally constructed in 2014 to reprocess gold tailings at a rate of 1,000 tonnes per day with an agitated cyanide leach and Merrill-Crowe recovery system.
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reached in February, 2021, Tarachi holds the option to acquire a 100% stake in the project for US$4.75 million in cash and 7.5 million shares through March, 2025. That grade is considered high by industry standards as the average grade of most open pit gold mines today is around 1.0 g/t. Magistral features a fully permitted 1,000 tonne-per-day Merrill-Crowe tailings reprocessing plant and tailings disposal facility and access to an estimated (non-NI-43-101-compliant) resource of 1.3 million tonnes of tailings material with an historic average grade of between 2.06 and 2.11 g/t gold.
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It aims to use the cash flow to fund exploration at the company’s other key asset – the Tarachi Project in Sonora State.
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The company has been working to advance the Magistral mill and tailings project to the production stage. The company is well financed with $8 million in cash and led by CEO Cameron Tymstra, a mining engineer with previous experience in tailings recovery projects. Tarachi is a company that offers investors a rare window on exploration upside and near-term cash flow from gold production in Mexico. on Monday tabled results of a preliminary economic assessment (PEA) for its Magistral mill and tailings project in Durango, Mexico.