“The current management group worked privately to develop the alluvial potential of the Toroparu area. The alluvial mining started around 2004, after the building of a road to site from tidewater. They drilled it for the first time and discovered the bedrock potential—the underlying primary bedrock mineralization. In the 27 holes they outlined 3.3 million ounces gold equivalent—that’s gold and copper. In 2010, we had two resource updates to bring it up to about 7.2 million ounces gold equivalent.
“The announcement today is more or less infill drilling within the current resource envelope. We like the grade in these results. These particular holes are more or less staying the course. As we alluded to in the press release, we’ll be putting out the third resource update since going public a year and a half ago and hanging the economics on those ounces in the form of a cash flow model. And we are doing prefeasibility level geotech, metallurgy and so forth. Provided that those assumptions are within reasonable tolerance of the assumptions we’re using in the scoping study, we’ll go straight to feasibility.
“Keep in mind the current group are a permitted mining group in Guyana. We have a 3,000-tonne-a-day mining permit, and we’re moving to upwards of 30,000 tonnes a day. So it’s more of an expansion than a brand new deal.”
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