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The 60 g/t gold topcut is based on resource estimates for AUX Canada’s nearby La Bodega and La Mascota deposits, while an arbitrary cutoff of 15 g/t is also provided. True widths were estimated to range from 70% to 100%. Down-hole depths extend to 442 metres.
On September 12 Galway announced an initial resource estimate for another nearby gold project, its 80%-held California Property.
Using a 2 g/t gold cutoff, the indicated category shows 2.39 million tonnes grading 5.53 g/t gold for 424,385 gold ounces while the inferred category shows 3.85 million tonnes grading 5.38 g/t for 666,470 ounces.
Metallurgical recoveries range from 93% to 99%. Sampling so far shows the mineralization is amenable to conventional sulphide flotation, the report states.
Galway boasts that California’s average grade “is 40% higher than AUX’s gold grade of 3.9 g/t as originally reported by Ventana Gold.” In one of last year’s high-profile buyouts, AUX Canada picked up Ventana’s La Bodega-La Mascota deposits, adjacent and along strike to California, for $1.5 billion.
Three kilometres from California sits Eco Oro Minerals’ TSX:EOM Angostura Gold-Silver Project. On September 14 the company announced that Colombia’s federal mining authority, Agencia Nacional de Mineria, granted an extension of the entire concession. That news comes as some relief to the company. Previously the ANM had considered defining some 54% of the land package as part of a páramo (which would make it a protected ecosystem) and a regional park. The August 27 announcement sent shares tumbling from the day’s open of $1.98 to an August 29 low of $0.73. Since then the stock has gradually climbed to the September 14 press time price of $1.40. However government ministries have yet to determine the final boundaries of the protected area.
Angostura has a February 2012 PEA that projects an underground mine producing an average 269,000 gold-equivalent ounces annually, with cash costs of US$494 an ounce (or total costs of $702 an ounce) over a 10-year life. Capex comes to $529 million, post-tax NPV $334 million at a 5% discount, post-tax IRR 14.8% and payback 5.5 years.
About 10 kilometres west lies the Surata Gold Project held by AuRo Resources TSXV:ARU. Last spring the company announced channel samples that identified two large anomalous gold-silver zones. Since then the company has been raising money. Most recently, on September 13, AuRo announced a private placement of 16.67 million units at $0.03 each to raise $500,000. That offer came just one day after the company announced the closing of its previous private placement, which issued 5.21 million units to raise $260,500.
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