EnviroGold completes trial mining Las Lagunas gold tailings project

EnviroGold (ASX: EVG) has received a boost with successful completion of “trial mining” on its Las Lagunas gold tailings project in the Dominican Republic.

The trial demonstrated ease of operations under dry conditions, and confirmed contractor’s pricing.
Brian Johnson, executive chairman of EnviroGold said today, “it is exciting for the company to be nearing gold and silver production early next year in an environment of record bullion prices.

“If current prices are maintained for the first two years of operations, profits over the two year period would be expected to increase from the previously estimated US$78 million to approximately US$104 million after tax and Government profit sharing, which would result in significant early cashflow for an emerging producer”.

During the dry season (approximately six months of the year) it is proposed to doze tailings to an excavator which will load directly into a moveable penstock. The material will then be slurried before being pumped to the process plant, 200 metres downstream from the storage dam.

At the same time, contractors will move material by articulated off-highway trucks to stockpiles outside the dam which can be recovered during the wet season when rain would otherwise interrupt operations.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18835/envirogold-completes-trial-mining-las-lagunas-gold-tailings-project-18835.html