Metals Exploration plc said its initial estimates showed “significant improvements” to the previous bankable study for La India gold mine project in Nicaragua.
ADVANCED
Following a site visit last November and internal studies, the company has increased the 2022 figures for open pit mining to 2025 figures based on open pit / underground production.
Annual production has more than doubled from 71,600 oz to 145,000 oz.
Yearly ore production has risen from 890 kilotons per annum to 1,400Ktpa with 2.56 grade per ton increasing to 3.53 g/t.
Production during the life of the mine has more than trebled from 548,000 to 1.8 million oz.
Initial capital expenditure slightly rose from $116m to $122m.
Metals is targeting the start of production at La India by the end of 2026.
The company said it was in final negotiations to purchase a second-hand plant to match the potential production of 1,400 Ktpa of ore.
An engineering firm is expected to be appointed next month to begin construction drawings, before exploration and definition drilling in April and civil works in May.
The company is targeting the start of production by the end of 2026.
Chief executive Darren Bowden added: “We are well advanced with efforts to commence construction production, and have an established in-country team of Spanish speakers who I have previously worked with.
“Our aim is to bring La India into production before the end of 2026, in order to replace cashflow from Runruno as it approaches the end of life of mine.”
Metals’ existing assets in the Philippines comprise the mature Runruno mine and early-stage Abra copper-gold exploration project.
The company, which plans to use cash from Runruno to begin construction at La India, posted full year 2024 free cash flow of US$96.7 million, an increase from the previous year’s $72.3m.