By Emmanuel Tumanjong
Special to Dow Jones Newswires
Australia’s Chesser Resources Ltd. said Tuesday that it expects its Diamba Sud project in Senegal to produce at least 704,000 ounces of gold at a cost of $820 an ounce over seven and a half years.
The study said the first two years of production are expected to deliver approximately 244,000 ounces of gold at an overall cost of $545/oz.
“These excellent scoping study results clearly demonstrate that there is a low risk and very robust potential future gold mine at Diamba Sud,” Managing Director Andrew Grove said.
For its development, the project will require a pre-production investment of $159 million, including $23 million to manage contingencies.
For a gold price of $1,800/oz, Diamba Sud would have an after-tax net present value of $301 million and an internal rate of return of 59%, Mr. Grove said.
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