Andean's Argentine project to cost $434m

Fremantle-based Andean Resources Ltd has initiated a bankable feasibility study on its Cerro Negro gold and silver project in Argentina, which is estimated to cost $434 million to develop.

Engineering firm Ausenco Services Pty Ltd has completed a pre-feasibility study on the project indicating it could produce over 1.3 million ounces of gold during a six year period from 2011, with capital expenditure at $US281 million ($A434 million).

Ausenco, which used a metal price assumption of $US800 an ounce for the study, estimates the project could have an average cash cost of $US198 an ounce over the duration of its mine life.