Post by Franko10 ™ on Sept 16, 2004 7:26:43 GMT -5
Wed Feb 19, 2003
J.R. Doran Joins Morgain as Senior VP Operations
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Morgain Minerals Inc. ("the Company") is pleased to announce that Mr. J.R. (Rod) Doran, P.Eng. has joined the Company in the capacity of SENIOR VICE PRESIDENT, OPERATIONS.
Mr. Doran will be responsible for the management of the work program planned for the El Cairo heap leach gold mine in Durango Mexico with the objective of establishing production. He will also manage all other mining operations.
Mr. Doran brings over 30 years of underground and open-pit mine operating experience to the Company with emphasis on the gold mining industries of Canada and Mexico. Amongst other executive mining operating positions Mr. Doran was Mine Manager of the Kremzar Gold Mine for Canamex Resources and General Superintendent of the Kerr Addison Gold Mine for Kerr Addison Mines Limited.
Mr. Doran is a member of the Ontario Society of Professional Engineers, the Canadian Institute of Mining and Metallurgy and the American Institute of Mining, Metallurgical and Petroleum Engineers. Mr. Doran earned Bachelor of Science degrees in Mining Engineering from South Dakota School of Mines & Technology and Engineering Administration from Michigan Technological University.
In a pre-feasibility study on the El Cairo gold mine dated September 2002 A.C.A. Howe International Limited ("Howe"), a mining engineering consulting firm in Toronto, Ontario reported that based on an annual production rate of 4.0 million tonne of "run-of-mine" ore grading 0.81 gm Au/t, a recovery rate of 75%, a waste/ore stripping ratio of 1.36 the mine could generate pre-tax cash flows as tabulated below. Howe estimates the capital cost at US $14.0 million.
Pre-Tax Cash Flows in Million US Dollars (Gold at US $350/oz)
Year 1 $27.20
Year 2 11.40
Year 3 5.70
Year 4 6.10
Year 5 5.90
Year 6 1.60
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TOTAL $58.00
It was evident from the above pre-feasibility study that a higher-grade gold zone exists near surface. Howe revised the pre-feasibility study in January 2003 and recommended mining at 1.0 million tonnes per annum in the first 8 years. At this mining rate Howe estimated capital cost at US $3.0 million. The production statistics and pre-tax cash flows at a gold price of US $350 per ounce for this mining rate are listed below.
Year 1 Year 2 Year 3
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Grade g/t Au 1.43 2.06 1.34
Ozs produced 42,898 52,886 37,805
Pre-tax Cash Flow $6,477,000 $12,687,300 $6,218,600
Recovery 75% 75% 75%
Payback Period 6 months
Cash Cost/oz $199 $110 $185
The mine could be in production in late 2003 or early 2004 after more metallurgical work is completed between April-September 2003.
J.R. Doran Joins Morgain as Senior VP Operations
--------------------------------------------------------------------------------
Morgain Minerals Inc. ("the Company") is pleased to announce that Mr. J.R. (Rod) Doran, P.Eng. has joined the Company in the capacity of SENIOR VICE PRESIDENT, OPERATIONS.
Mr. Doran will be responsible for the management of the work program planned for the El Cairo heap leach gold mine in Durango Mexico with the objective of establishing production. He will also manage all other mining operations.
Mr. Doran brings over 30 years of underground and open-pit mine operating experience to the Company with emphasis on the gold mining industries of Canada and Mexico. Amongst other executive mining operating positions Mr. Doran was Mine Manager of the Kremzar Gold Mine for Canamex Resources and General Superintendent of the Kerr Addison Gold Mine for Kerr Addison Mines Limited.
Mr. Doran is a member of the Ontario Society of Professional Engineers, the Canadian Institute of Mining and Metallurgy and the American Institute of Mining, Metallurgical and Petroleum Engineers. Mr. Doran earned Bachelor of Science degrees in Mining Engineering from South Dakota School of Mines & Technology and Engineering Administration from Michigan Technological University.
In a pre-feasibility study on the El Cairo gold mine dated September 2002 A.C.A. Howe International Limited ("Howe"), a mining engineering consulting firm in Toronto, Ontario reported that based on an annual production rate of 4.0 million tonne of "run-of-mine" ore grading 0.81 gm Au/t, a recovery rate of 75%, a waste/ore stripping ratio of 1.36 the mine could generate pre-tax cash flows as tabulated below. Howe estimates the capital cost at US $14.0 million.
Pre-Tax Cash Flows in Million US Dollars (Gold at US $350/oz)
Year 1 $27.20
Year 2 11.40
Year 3 5.70
Year 4 6.10
Year 5 5.90
Year 6 1.60
---------------
TOTAL $58.00
It was evident from the above pre-feasibility study that a higher-grade gold zone exists near surface. Howe revised the pre-feasibility study in January 2003 and recommended mining at 1.0 million tonnes per annum in the first 8 years. At this mining rate Howe estimated capital cost at US $3.0 million. The production statistics and pre-tax cash flows at a gold price of US $350 per ounce for this mining rate are listed below.
Year 1 Year 2 Year 3
--------------------------------------------------------
Grade g/t Au 1.43 2.06 1.34
Ozs produced 42,898 52,886 37,805
Pre-tax Cash Flow $6,477,000 $12,687,300 $6,218,600
Recovery 75% 75% 75%
Payback Period 6 months
Cash Cost/oz $199 $110 $185
The mine could be in production in late 2003 or early 2004 after more metallurgical work is completed between April-September 2003.