Gold Resource Corporation has appointed Responsible Mining Solutions, a division of SLR Consulting, to complete a comprehensive feasibility study for its wholly owned Back Forty project in Michigan’s Upper Peninsula. The study will examine key project development areas, including mine design, processing alternatives, infrastructure requirements, environmental considerations and project economics.
Polymetallic project moves toward development evaluation
The Back Forty project is a polymetallic development containing gold, silver, copper and other mineralisation.
The feasibility study is intended to provide a detailed technical assessment of the project by evaluating engineering designs, development requirements and operating assumptions required for future production decisions. The study will advance the project from earlier technical evaluations toward a more detailed assessment of mine planning, processing strategy, capital requirements and operational considerations.
Previous technical assessment outlined project economics
An earlier technical report summary evaluated Back Forty using commodity price assumptions of US$1,800 per ounce gold, US$23.30 per ounce silver and US$3.90 per pound copper. Under those assumptions, the project generated an internal rate of return (IRR) of 25.7% and a net present value (NPV) of US$214.5 million using a 6% discount rate. Gold Resource Corporation expects current commodity market conditions to support a higher project valuation, while the feasibility study will provide updated analysis of technical, permitting and economic factors.
Feasibility work to assess development requirements
The feasibility programme will address the requirements needed to advance the Michigan-based polymetallic asset, including environmental factors, infrastructure planning and development economics. The study will provide further definition of the project’s potential production pathway and evaluate the technical and regulatory requirements associated with advancing the Back Forty project.
