PMI Gold Corporation says it is set to make a final investment decision at its Obotan gold project in West Africa in the fourth quarter of 2012, after releasing a feasibility study today which put a $US296 million price tag on the operation.
The feasibility study flagged annual production of 221,500 ounces of gold per year over the first five years of the mine, with life of mine project revenue expected to exceed $US2.9 billion.
Estimated life-of-mine cash operating costs will be around $US626/oz, PMI said.
PMI managing director Collin Ellison said the study clearly demonstrated the potential to develop a long-term mining operation at Obotan.
“We are currently continuing detailed design and engineering work, as well as assessing options to optimise capital and operating costs while we continue discussions with potential project financiers,” Mr Ellison said in a statement.
“This puts us firmly on track to make a development decision during the fourth quarter of 2012, paving the way for us to secure project finance and commence development early next year.
“A select group of leading international banks have provided detailed indicative offers to deliver debt financing facilities, and we are currently assessing these offers.”
At close of trade today, PMI stocks were up 4.79 per cent, trading at 87.5 cents.
