Wednesday, 31 October 2012

Belvedere Resources: Kopsa project should have attractive economics, reckons Ocean Equities

The economics for Belvedere Resources' (CVE:BEL) Kopsa gold proect should be attractive, says broker Ocean Equities.
It comes after a maiden resource estimate on Monday this week showed the Finnish property contained 223,000 ounces of indicated gold.
There is established infrastructure and because the mineralisation starts at bedrock, a low strip ratio for open pit mining, notes analyst Christopher Welch.
"One route the company is considering is to truck the ore 18km up a paved road to the Hitura plant for processing. 
"The company has a fully permitted tailings storage facility which may allow Belvedere to bring the project into production quicker than if it was applying for new tailings storage at Kopsa."
Welch added that if before trucking the ore to the mill, optical screening to isolate the vein quartz and arsenopyrite was adopted, operating costs could be reduced.
This maiden estimate is a "significant" step, he added.
"This deposit can absorb more drilling which will increase the total size of the resource whilst the feasibility study due next year will convert the indicated straight to reserves."

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