With no technical "fatal flaws" in the due diligence report, Navigator Resources' (ASX: NAV) acquisition of the Bronzewing Gold Project is moving closer.
Acquisition date and development of the Bronzewing project (and gold production) is planned in January 2010.
Bronzewing has an Indicated Resource inventory of 6.395Mt @ 1.9g/t Au for 396,000 contained ounces. Probable Mining Reserves are 6.324Mt @ 1.9g/t Au for 385,000 contained ounces. A further 0.661Mt @ 1.8g/t of Inferred material which occurs within the Cockburn Pit shell (39,000 contained ounces) is not included in the above Indicated Resource.
Capital cost estimate to resume gold production at Bronzewing is $6.9million. Gold production of 355,000 ounces is confirmed over base case mine life of 3.5 years.
There will be a open pit mining only mine plan which includes early access to ore in the already pre-stripped Central Pit, which lowers project risk.
Negotiations with equity and debt funders are progressing for purchase of the project.
Importantly, there is minelife upside on the 3.5 years.
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